All things considered, it has only been about 3 months since Trump took office, I feel like there is absolutely no way that this was just a single craze and from here things will even out.
I feel like until 2028 (or maybe 2026?) S&P 500 is going to look like a roller coaster.
What do you think?
Can you explain a little further? I don’t know what you are talking about
If you have 20 minutes to spare this video really helped clear it up for me.
It might seem unrelated at first, but bonds will be discussed approx. 5 minutes in, and the preceding parts helps lay the groundwork.
I’d later come to understand this is called Modern monetary theory.
The original reply was great, I just want to make it dead simple: if bonds continue to be sold off in these numbers, it indicates investors no longer believe in a future where the US dollar is the international reserve currency. This is very bad if you’re an American.
My knowledge is very superficial, but usually government bonds are a very safe investment. It’s basically how countries can even go into debt. In times of market uncertainty, you would expect that investors who sell off stocks put their money into bonds. However, investors are also selling US bonds, which means confidence in the US is waining. The US dollar is on track to losing it’s place as the world’s reserve currency.
This is all very bad for the US, since it also means they have to increase interests in bonds so people keep buying, which leads to more taxes since the interests on the bonds is the interest the US has to pay on their debt.
Please correct me if I am wrong