\r\n\tThat trees cannot grow endlessly into the sky is obvious. And yet, it was thought that the stock market would take off to new heights under Trump. After all, Trump is considered to be very favorable towards capital markets \u2013 including crypto. However, in retrospect \u2013 and even currently \u2013 this expectation does not seem to be coming true.\r\n<\/p>\r\n
\r\n\tThe economically unreasonable tariffs, with which Trump presumably hopes for simple and quick successes, bring more volatility than the financial market would like.\r\n<\/p>\r\n\r\n \r\n\t\tOn social media and in forums such as Wallstreetbets<\/a>, there is already speculation that Trump intends a crash to enable excessive profits for billionaires and institutional investors in his circle.\r\n\t<\/p>\r\n\t \r\n\t\tAfter all, a recession does not affect the living standards of the upper ten thousand in the slightest, while at the same time, a major stock market crash could offer a discount of perhaps one-third, and in the case of a massive crash, stock prices could even plummet by up to two-thirds.\r\n\t<\/p>\r\n\t \r\n\t\tWhether the Trump administration truly believes in tariffs or merely sees them as a means to an end; the arbitrary threats and impositions, even against long-standing allied countries such as Canada, raise questions and create uncertainty.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tAn alternative, less extreme version of the theory of a deliberately induced stock market crash is that of deliberate pinpricks through announcements, delays, and subsequent cancellations or executions of previous statements.\r\n\t<\/p>\r\n\t \r\n\t\tOnly Trump and his inner circle know when which announcement will be made. Having reliable knowledge about whether major indices like SPX and SPY will go up or down the next day, even by just a quarter of a percent, is worth a lot of money through derivatives.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tStock prices are subject to constant fluctuations. These fluctuations can affect individual stocks or, more often, the entire stock market.\r\n\t<\/p>\r\n\t \r\n\t\tInvestors are familiar with the inherent volatility of stocks and have no choice but to live with it. After all, volatility is systemic; one cannot expect that prices, which fortunately tend to rise in the long term, will do so in a smooth, straight line rather than in a zigzag pattern.\r\n\t<\/p>\r\n\t \r\n\t\tHowever, Trump now enters the scene as a new, unpredictable, and powerful player whose goals seem unclear.\r\n\t<\/p>\r\n\t \r\n\t\tThe well-known factors influencing prices are, in a sense, natural laws that are at least not subject to the mere will of a single person: employment figures, inflation rates, or consumer sentiment cannot be turned up and down at the push of a button.\r\n\t<\/p>\r\n\t \r\n\t\tWith the new, unpredictable factor of Trump, financial markets seem to be struggling lately, as he can effortlessly thwart predictions of price developments \u2013 whether intentionally or accidentally.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tGerman and European stocks seem to benefit somewhat from the uncertainty among U.S. investors. Discussions in U.S. forums about whether investing in European stocks might be a good idea have become more frequent.\r\n\t<\/p>\r\n\t \r\n\t\tThe recently increased interest from American investors is also making domestic stocks more attractive again.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tAfter the S&P had already wobbled the day before, it dropped by a remarkable 2% on February 21, 2025, in a steady decline within hours and without the usual zigzag pattern.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tRecently, there were three Sundays in a row where Trump announced things that were then postponed, altered, or canceled during the following week.\r\n\t<\/p>\r\n\t \r\n\t\tIs there a pattern to recognize here? Could it be possible to make money from Trump’s erratic policies by deliberately aligning with him and betting precisely on the rise and subsequent fall of stock prices?\r\n\t<\/p>\r\n\t \r\n\t\tUnpredictability and drastic statements are obviously tools that Trump uses intensively to achieve political success.\r\n\t<\/p>\r\n\t \r\n\t\tHowever, the idea that small investors could participate and ride the Trump wave without insider knowledge seems unrealistic, as unpredictability is the very strategy.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tShould one “buy the dip” or temporarily reduce stock holdings in favor of bonds, savings accounts, or gold for safety?\r\n\t<\/p>\r\n\t \r\n\t\tWith a long-term investment horizon, buying quality stocks like MSFT, GOOG, AMZN, NVDA, and others at currently favorable prices still seems attractive. Long-term patience may be even more necessary with Trump than usual. Due to Trump, dry spells could be longer than usual.\r\n\t<\/p>\r\n\t \r\n\t\tIn conclusion, we note that increased caution is advisable in the coming weeks and months, and one might be better off skipping some overly optimistic stock deals.\r\n\t<\/p>\r\n\t \r\n\t\tP.S.: One thing that Trump can hardly influence and that has always been significantly less volatile than stocks is real estate in Germany. Perhaps now is the time to shift some investments from stocks to use as equity for a rental property. We offer non-binding advice.<\/a>\r\n\t<\/p>\r\n<\/section>\r\n\r\n\r\n","protected":false},"excerpt":{"rendered":" That trees cannot grow endlessly into the sky is obvious. And yet, it was thought that the stock market would […]<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"https:\/\/meine-renditeimmobilie.de\/?p=9999","footnotes":""},"categories":[189],"tags":[],"post_folder":[245],"class_list":["post-10029","post","type-post","status-publish","format-standard","hentry","category-stocks","en-US"],"_links":{"self":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/10029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/comments?post=10029"}],"version-history":[{"count":6,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/10029\/revisions"}],"predecessor-version":[{"id":10144,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/10029\/revisions\/10144"}],"wp:attachment":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/media?parent=10029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/categories?post=10029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/tags?post=10029"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/post_folder?post=10029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Stock Market Crash Intended by Trump?<\/h2>\r\n\t
Trump and Dump<\/h2>\r\n\t
Markets Dislike Uncertainty<\/h2>\r\n\t
Trump Boosts the DAX<\/h2>\r\n\t
First Mini-Crash on February 21, 2025<\/h2>\r\n\t
Making Money with Trump?<\/h2>\r\n\t
How to Deal with Falling or Excessively Volatile Prices?<\/h2>\r\n\t