I've been watching the market all day and I actually have a really well developed theory on this.
It's important to know where money is coming from. Traditional US firms are, in fact, selling for the most part. All day the market has fallen to 3-5 down before jumping back up to about 0.5 up, it's been happening all day. The question is, where the fuck are these
tens of billions of dollars coming from?
Ladies and gentlemen, I present to you today's Asian indexes.
View attachment 7190591
Asia is a total loss. Beyond correction and into bear territory. Asian markets are highly dependent on the manufacturing and export sectors, which are heavily dependent on US consumption. Tariffs plus weak US consumer confidence has Asian investors panicking.
What I think is happening, is these Asian investors are playing the long game. They are predicting a Trump victory and stock rebound, and are dumping their Asian holdings for US ones, replacing domestic money with their own, waiting for the rising tide to make their money back when domestic money returns to the market. The grand irony, of course, is that by predicting a Trump victory and
acting on that prediction, they have very likely made it a reality.
The whole thing is quite fascinating, really.
