But see how even WSB idiots could see this coming and they are making a lot of money on shorts. And the premiums are sky high, meaning the big players are shorting like crazy. Easiest money to be made in decades for the Wall Street sharks.
You don't know if there will be a u-turn. There's no logic at all to this administration, they could just announce the "Biden correction" is over and that the tariffs have now worked, plus the government is buying stocks.
Any fantasy scenario is possible.
The confidence is gone. The risk is high whatever happens. The lowest risk strategy is now betting on market failure.
That does paint a pretty grim picture wrt potential stock growth, if this finally triggers the correction back to a more sane stock price (last I read about it, you'd have to hold the stock for 65 years for the investment to break even).
The current stock valuations are essentially based purely on the same mechanic that makes Ponzi schemes to successful... At least short term.
This stupids-in-charge administration might just have brutally popped the AI bubble.
There is an opinion that making them (a big business, and overseas players too), crying for audience is a way to make them loyal to a regime. So they come to the audience, they kiss the ring, they get some preference, and the regime becomes even stronger. I'd not name Trump crazy as some do, but simply a person presenting and promoting the interests of a certain entity. I won't name my guesses about the possible entity.
I don't believe it's the case, but what if Trump and friends are just wishing to play the markets and he will back off with tarrifs? We will see a massive short squeeze and lots of people taking huge losses.
Most trading professionals would not call it gambling if you have positive expectation and a process.
Positive expectation properly and repeatedly executed over time is a business.
Would you say a casino is gambling by offering table games to customers?
Most gamblers have a positive expectation and a process.