Trump did Trump again.. T.T He stirred up the

Trump did Trump again.. T.T He stirred up the market properly in April.. He showed it properly in the early morning today. He said he would impose a 100% tariff on China from November 1st. He imposed a 245% tariff in May, and he’s a negotiating card himself. 245% tariff is like no trade, so he’s going to lower it in no time. It’s a completely different story from the time when he kept saying this. From mid-May to mid-August to November 10th, he automatically deferred tariffs by 90 days. When I think about the shock of the financial markets and I remember hearing about the TACO, the financial markets themselves are so solid and the U.S. economy is looking good. Maybe he gained confidence. I remember in March when the U.S. stock market was on the rise as we talked about U.S. exceptionalism, and I remember putting more pressure on tariffs. And then on April 9th, TACO started.

As I read about the possibility of a second season of tariff disputes with China, I saw financial markets falter once. New York’s three major indexes fell sharply. And, reflecting the possibility of a U.S.-China tariff war and shrinking consumption due to asset market adjustments, the government bond market has seen a rapid decline in interest rates. Yes. The demand for U.S. government bonds, which are safe assets, has exploded. What’s a little unique is that the safe asset, the dollar, has strengthened against emerging currencies such as the won. It has weakened against the yen and the euro. The yen has strengthened… There are some people who automatically think of N-Carri, right? Yes. Japan’s 10-year interest rate is approaching 1.7% soon. The previous day, the U.S. 10-year Treasury bond rate fell rapidly to 4.05%, narrowing the gap between the two countries. If this atmosphere continues, it will not be easy for Japan to hurry to raise interest rates.

The coin price has plunged while the international gold price is ambiguous, but I think it would be appropriate to use the term flat. Then, the yen, the euro, and the gold price were strong against the dollar. Doubts about the dollar… It reminds me of this big picture from April. While the price of euro, yen, and gold rose sharply in April… The dollar fell quickly against these currencies. What was interesting was that currencies of emerging economies, including the won, weakened against the dollar and surpassed 1,450 won to the dollar. In fact, the won… In May, when the talk of season 2 of the Plaza Agreement was raised… Around Children’s Day, it plunged from 1450 won to 1350 won at once and hit the key… While the dollar weakened sharply in April on the dollar index, which measures the value of the dollar around advanced currencies… The won wasn’t using its power.

Then is it similar to then… You can say that… To get to the flow of April… And the interest rate on U.S. Treasuries has to shift back up, and you’ll remember, after the April 2 tariffs, when the financial market faltered, the interest rate on U.S. Treasuries fell so fast that it pushed back to 3.7 percent on a 10-year basis. And then, all of a sudden, the issue of trust in U.S. Treasuries has been talked about, and that’s what happened back in April. And that’s when U.S. stocks, bonds, and the dollar all went down… This is when the so-called triple weak U.S. became a reality. To see a picture like this… We need to monitor the trend of interest rates on U.S. government bonds a little more.

If the asset market is stable, Trump loses patience… I tend to back down from TACO… but if the asset market falters… Let’s go back to TACO. Let’s have that expectation. Let’s hope that we can get out of the current conflict as soon as possible. Especially as the investment fever in the asset market has been so intense, I’m sure there are a lot of people who feel quite tinged by just one drop in stock price. For your information, if the asset market goes beyond its current level and becomes overheated… It can create unexpected problems, which is the expansion of leveraged investment.

The U.S. stock market has shown perfect momentum for growth, to the point where I think it’s a “promised land” recently. Overwhelming growth and global investor confluence, and the Fed’s interest rate cuts and productivity improvements through artificial intelligence, to the point where I think it’s a zero-defect asset market. With this perfect, more people will be forced to invest in the U.S. stock market. And people who already want to invest will be looking for higher beta targets, more leverage, in order to make more returns. It also seems to be true that leveraged investment has increased significantly in the course of continuing its strength around the FOMC in September in anticipation of a rate cut and in the belief that the power of liquidity is eternal.

For leveraged investments, first, you buy stocks, you borrow money as collateral, you buy stocks, you borrow money as collateral, you buy more as collateral… Buy more…. There’s a way to do this… So someone… we’re going to need someone who keeps lending money with these assets as collateral. At the top, we have a repo market that lends money in a very short period of time with government bonds as collateral. Recently, in the repo market, we hear that interest rates don’t come down easily. This becomes clear when you have a strong tendency to borrow money in the short term and invest in more risky assets. Eventually, the money is driven into non-current investment assets that can secure liquidity and make a little more profit. If the price of an asset goes up constantly… You can take out more loans as collateral as much as the price of the assets that have gone up, so this can stimulate increased liquidity in the market.

It is said that the recent rise in asset prices raises capital gains for the upper-income bracket, which owns a large number of U.S. stocks, thereby boosting their consumption. Their consumption is supporting the growth of the U.S. despite the shrinking consumption of the middle class. In the end, the rise in asset prices is driving growth, maintaining strong demand. What we talked about and what we talked about