Chinese concept stocks fell over 5%, and today's market is lively. Not only Chinese concepts, but Trump's trades in the US have also begun to cool down.#BabyMarvinf9c7牛市新星⭐
Moreover, not only that, the entire commodity market is also declining; gold and oil are both falling. Logically, as the US begins to cut interest rates and China also adopts a looser approach, the market shouldn't experience a significant drop. So why is it falling currently? The mainstream circles of US stocks believe that after Trump took office, he wants to give companies a large tax cut, but US fiscal spending has not decreased.
So what about fiscal spending? Everyone knows what Trump is planning; he still wants to issue bonds and then coerce the world into buying his bonds. The benefits are left to American companies, and then he borrows from the world.
Musk has long said that US debt will ultimately lead to collapse because if it doesn't collapse, the US may not even be able to pay interest. This trend has become more apparent since Trump took office. He is a businessman, a businessman himself. He cuts taxes for himself and then borrows money globally to pay salaries. This plan is ringing loudly. So why are Chinese concept stocks falling? There are mainly three reasons. I mentioned one yesterday; the market trading volume is too concentrated, with a daily trading volume of 25 trillion, indicating an overheated market, which is contrary to the slow bull principle. Second, the expectations of good news have already been fully released in the short term, so market fluctuations are normal.
Currently, there is no increase in monetary measures. Since Trump took office, the global economy has become more uncertain. This person is the biggest uncertainty in the world, and the logic of the current strong market is still normal. There is no need to panic excessively.