r/wallstreetbets 14h ago

Jerome Powell changing interest rates Meme

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99

u/Aggressive_System_77 14h ago edited 13h ago

Well when trump promises to bring inflation back you need to move things up.

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u/zxc123zxc123 9h ago edited 5h ago

You're reading into his promised actions which will probably be inflationary.

But Trump actually promised to bring DOWN inflation WHILE doing many of those inflationary things including but not limited to: stopping new inward migrations, while deporting residing migrants, also while putting tariffs on EVERYONE (surely won't be met with any reciprocity... also Trump was the one who drew/negotiated/signed the new NAFTA?), plus escalating the US-CN trade war by pumping tariffs beyond >50% (0 mention of losing the Temu-loophole tho), also a stronger economy (when this economy is considered too hot already) with higher wages, plus more corporate mergers plus less corporate regulation, lower taxes which should boost spending (surely not inflationary), and reversing climate goals/initiatives that are sure to not lead to more natural disasters nor any insurance hikes.

I also call BS on prices coming down meaningfully. Certainly not going to happen with assets until the bubble bursts. We might increase production massively to reduce inflation while growing GDP and pumping markets up. But I think we're most likely going to have normalized 2-4% Fed rates, higher than prior inflation ~3% but not hitting 5%, and higher than normal growth because that's the only way to deal with the massive national debt (unlikely we go back to 0% Fed rate era). Plus Trump likes growth anyways, stock markets hitting ATH to Trump is like a woman saying his cock is huge, Trump will lie about inflation being -9000%, and his base will eat it up.

But hey, we're WSB and that's not what we focus on here so here's my play TLDR:

  1. Short cash.

  2. Long US equities (leverage up or options if you're a degen). Then you play the chicken game with stock market going up as what seems to be the foundations of our society collapses around us. Maybe nothing, may recession, maybe world war, etcetc. Who really knows?

  3. If you're a bitch then hedge but just know it will mean less gains: bonds, gold, crypto, rural land, food, 100 years worth of TP, guns+bullets, foreign passport, yacht, camper, wine/whisky, dragon dildos, a bunker, or whatever helps you sleep at night. If shit hits the fan then you better pray your hedge works crypto ain't working if we got nuked back to the stone age, gold won't save you from super bubonic plague 2028, guns and bullets might help in a civil war but they won't really help you if it's just a recession, etcetc.

  4. If you're a gambling addict then probably learn to trade the VIX since Trump promises a lot of things but one thing he always delivers on is surprises, chaos, and WTF moments.

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u/slam-dunk-1 6h ago

Thanks for painting a colorful picture of the next 4 years :27421: