It’s not very often that you hear a president say something like “Better Buy Stocks Now.”
But that’s exactly what President Trump did after signing the first (of many) trade deals with the UK.
He also added that when his Tax Cut Bill passes, it is going to Make America Powerful Again.
So, is MAPA the new slogan for Trumpers?
We would agree that passing a tax cut bill would be great for the country…and especially our economy.
But what happens if it doesn’t pass?
And is anyone factoring in the effect of Stagflation?
READ: Stagflation, the Fed and Trump Tariffs (HERE).
So far, the markets have responded well to the new trade deal…and will hopefully continue.
But as we mentioned in our Stagflation post (above) we are likely to be in a panic cycle soon.
Ironically (or NOT) a panic cycle does not necessarily mean the markets go down.
They could also panic to the upside.
However, most people interpret the word panic to be negative or destructive.
Either way, panic cycles can be great opportunities for those with ears to hear.
Buy Stocks Now
When Trump said: you better buy stocks now was he just cheerleading for Americans to hopefully start to think positive again?
Or was he giving another shot across the bow of the Federal Reserve, to get Chairman Powell to lower rates?
Quotes:
- *TRUMP: FED’S POWELL IS ALWAYS LATE
- *TRUMP: EVERYONE IS CUTTING BUT THE FED
- *TRUMP: IF POWELL WOULD LOWER RATES, IT WOULD BE LIKE JET FUEL
- *TRUMP: US DOING WELL EVEN WITHOUT FED CUT
This is where we disagree with the Trump tactics.
And it’s mostly because, contrary to popular belief, lowering interest rates does NOT make the markets go up.
READ: The FED Does NOT Control the Markets Feb. 8, 2023 (HERE).
Making money cheap (lowering rates) to borrow will not motivate investors if they don’t think they can make money.
On the flip side, if investors believe they can make money – even if rates are double digits – they will borrow at high costs.
And historically, rising interest rates is a sign of a growing economy.
Don’t be fooled by the Presstitutes when they say things like “today the indexes have erased all the Post-Liberation Day losses.”
Because while that may be true, the major indexes (DOW, S&P, NASDAQ) are still negative for 2025.
So, should you buy more stocks now because Trump said so?
We’ll say YES…but only in certain sectors.
And you can read about those sectors we like in our upcoming May edition of “Simplifying Wall Street…In Plain English” (HERE).
Share this with a friend…especially if they are prone to do anything Trump says to do. They’ll thank YOU later.
And tell them:
We’re Not Just About Finance
But we use finance to give you hope.
Support always welcome via the digital tip jar.
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