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US Market in Turmoil! Investment Expert Suggests How to Proceed

US Market in Turmoil! Investment Expert Suggests How to Proceed

Investment experts indicate that observing U.S. Treasury bonds can help investors gauge market entry or exit. Recently, the U.S. Congress passed Trump's tax cut proposal, raising concerns about expanding fiscal deficits. The U.S. Treasury's auction of 20-year bonds saw yields rise to 5.047%, exceeding market expectations, leading to a weakening dollar.

Faced with this chaotic market, investment expert “JG” comments that the answer is quite simple. There’s no need to look at stock market fluctuations or predict the Federal Reserve's interest rate changes; just focus on U.S. Treasury bonds. Bondholders include central banks of various countries and huge institutions. These investors are unlikely to pull out unless they lose faith in the U.S. government.

If Treasury bond prices fall, it suggests that the market is losing confidence in the U.S. economy, which can affect policy direction. Moreover, if bond prices remain stable, the current trade policies may not change significantly. However, if they break below a certain level, the U.S. could face a triple threat in stocks, currency, and bonds. JG emphasizes that understanding market movements is more critical than following reports, and paying attention to bond indicators can potentially enhance investment stability.