priapism
Active poster
I think Trump is attempting to "walk down" the stock market with these tariffs.
He doesn't want it to tank 55% suddenly in a handful of months and break a bunch of things in the economy, so he's manufacturing a problem.
He's going to take the market down to the 40 week moving average, which is around 4700-4800 on the S&P 500…that's the next major support level. Then he'll attempt to stagnate it there for a few years. The stock market down 20-25% will also have obvious deflationary effects.
The S&P 500 should be closer to 3000, than 6200.
The Shiller PE ratio should be under 20 in a safe to buy stocks market. It's at 37 right now.
He also needs 30 year Treasury rates to go as low as possible, because a ton load of 30 year bonds need to be renewed this year. So he wants to tank the economy to get the Fed to lower rates down to 3.5% again, otherwise his deficits are going to look terrible in the next few years.
I think he'll keep these tariffs alive until he hits that bear market area under 5000 on the S&P 500 for the psychological spending effects.
Shiller PE Ratio - Multpl
He doesn't want it to tank 55% suddenly in a handful of months and break a bunch of things in the economy, so he's manufacturing a problem.
He's going to take the market down to the 40 week moving average, which is around 4700-4800 on the S&P 500…that's the next major support level. Then he'll attempt to stagnate it there for a few years. The stock market down 20-25% will also have obvious deflationary effects.
The S&P 500 should be closer to 3000, than 6200.
The Shiller PE ratio should be under 20 in a safe to buy stocks market. It's at 37 right now.
He also needs 30 year Treasury rates to go as low as possible, because a ton load of 30 year bonds need to be renewed this year. So he wants to tank the economy to get the Fed to lower rates down to 3.5% again, otherwise his deficits are going to look terrible in the next few years.
I think he'll keep these tariffs alive until he hits that bear market area under 5000 on the S&P 500 for the psychological spending effects.
Shiller PE Ratio - Multpl