2025：The Year of the Kangaroo Market
2025 is indeed the so-called Kangaroo Market, but one of the most important protagonists is not the kangaroo, but U.S. President Trump’s investment advisory. After he announced a complete tariff liberation day, the stock market bled profusely. However, after he continuously called for actions and revised the tariff agreement, it formed the largest artificial bull market in history, leading to an astonishing scene of retail investors squeezing short positions on Wall Street. Have you kept up with this wave of artificial bull market?
Trump’s Investment Advisory Call: Are You Keeping Up with the Artificial Bull Market?
In April this year, global stock markets were unsettled by every move of U.S. President Trump, facing a technical correction that nearly led to a bear market. On April 9, he suddenly announced a policy pause. Before this announcement, Trump posted on his own social media, “Now is a good time to enter!” leaving many stunned, believing this to be the largest “insider trading” in history.
As tariff negotiations continued to progress with constant revisions, Trump again publicly urged everyone to buy stocks in front of reporters last week. In the blink of an eye, the S&P 500 index had recovered the losses from the liberation day on April 2.
This Wave of Trump’s Artificial Bull Market: Have You Kept Up?
Following Trump’s announcement of a tough trade war, various investment banks on Wall Street lowered their stock market target prices, believing that the probability of the U.S. economy falling into recession had greatly increased. According to data from Bank of America, both hedge funds and institutional investors recently showed net selling in the stock market, while only retail investors continued to go long. Could it be that Trump supporters are following Trump’s investment advisory, leading to the astonishing sight of retail investors squeezing short positions on Wall Street?
The Market is Greedy, Is Wall Street Turning Again?
As the S&P 500 index approaches the overbought zone, the CNN Fear & Greed Index has also reached a greedy position of 70. Will this Trump bull market come to an end?
Recently, the two major trading departments on Wall Street made bold predictions about the U.S. stock market: to buy heavily into the stocks that have fallen the most this year to gain quick short-term profits. Since the major indices of the U.S. stock market have erased this year’s losses, these companies now indicate that traders and other speculative buyers who missed the opportunity will look for chances to catch up before the next round of turmoil triggered by tariffs hits again.
Can Wall Street giants turn the tide this time? Or will Trump’s investment advisory have more astonishing moves? Let’s wait and see!
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