URGENT! Blood Begins to Spill in the Markets
Markets Bleed as Trump’s Pressure on the Fed Signals a Strategic Play for Lower Rates
Many people are heavily leveraged, and the market is bleeding from all sides.
"Should I sell and wait for a recovery?" "Should I buy?" What can I do?
First, we must be smart enough to read the situation. The first thing to understand is that U.S. Treasury bonds need to be refinanced. As of today, these bonds pay a premium close to 4%, whereas just 4-5 years ago, they were below 1%.
This represents an enormous amount of money for the United States. What Trump is really doing is pressuring the Federal Reserve to lower interest rates. If rates drop, major investors will shift their money from cash to government bonds to earn a higher premium.
By doing this, the price of these bonds will decrease. This way, Trump can finance his entire term at much more attractive rates.