Here’s why the stock market turbulence may be far from over.
Transcript Below:
REBECCA WALSER: Do I think we’ve hit a bottom or should we brace for more downside? And the truth is, is that this is just the beginning. Trump has been in office. This is the springtime. So we’re talking about less than literally even six months. He is going to leverage. If you read his art of the deal, he is going to leverage the strategy and the power that he thinks he has. Obviously, with America still right now being the world’s reserve currency, America and America’s president does have global economic power that isn’t shared by anybody else. So what I think Trump is doing is leveraging his power that he has as the sitting U.S. President of the reserve currency of the world, and he’s trying to work out trade deals that are more reciprocally fair.
Even if we would say, gosh, Europe has been taxing our champagne forever and we are not taxing our, you know, our scotch that’s going over there or whatever. When we see that it’s not reciprocal and it’s not even Trump is actually the one bringing that and highlighting that to the world. But you can look beyond just tariff policy. You can look at the UN and see that the majority of support the UN comes from the United States of America. You can look at NATO and see that the majority of the military might and financial support comes from the United States of America. So I think Trump’s point is that in all of these global bodies, the United States is the key primary financial support, and that doesn’t seem fair to the U.SS and American citizens. We need to broaden that out.
So I believe that because he is specifically using tariff policy to implement not only economic change, but geopolitical change, that this has just begun. We are going to be in for a year of volatility. I do expect the market to pull back down further to the downside. I don’t believe this is the end, and that’s because there’s a lot of problems that we have globally in the macroeconomic environment. Since we printed over $20 trillion, the equivalent of $20 trillion USD globally since coronavirus in 2021 through 2023, that currency has to be absorbed. While it doesn’t hyperinflate the domestic currency of that country and doesn’t cause more problems. So because of all of the machinations globally since 2020, this is a reckoning. And I do think the markets pull down further. So there’s going to be buying opportunities, but just don’t sell out in fear.
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