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?
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