A Review of Stock Market Trends Following Trump’s Liberation Day: Have You Kept Up with the Largest Artificial Bull Market in History?
2025: The Year of the Kangaroo Market
2025 is rightly called the year of the kangaroo market, but one of the most important protagonists is not the kangaroo, but the investment guidance of U.S. President Trump. After he announced a complete tariff liberation day, the stock market experienced a bloodbath. However, following his continuous calls and revisions to the tariff agreement, a historically unprecedented artificial bull market was formed, resulting in an astonishing scene of retail investors short-squeezing Wall Street. Have you kept up with this wave of artificial bull market?
Trump’s Investment Guidance: Artificial Bull Market – Have You Kept Up?
In April of this year, the global stock markets were tumultuous due to the actions and words of U.S. President Trump, at one point facing a technical correction into bear market territory. On April 9, he suddenly announced a policy delay. Prior to this announcement, Trump had posted on his social media, “Now is a good time to enter!” which left many dumbfounded, believing this to be the largest “insider trading” in history.
As the tariff negotiations continued to evolve, last week, Trump publicly urged everyone to quickly buy stocks in front of reporters. In an instant, the S&P 500 index had recovered the losses from the liberation day on April 2.
This wave of Trump’s artificial bull market, have you kept up?
Following Trump’s Guidance to Buy In: Retail Investors Short-Squeezing Wall Street?
After Trump announced a tough tariff war, various investment banks on Wall Street lowered their stock market target prices, believing that the probability of a U.S. economic recession had significantly increased. According to data from Bank of America, hedge funds and institutional investors have recently shown a tendency to sell off in the stock market, while only retail investors have continued to go long. Could it be that Trump’s supporters are following his investment guidance, creating an astonishing scene of retail investors short-squeezing Wall Street?
The Market is Greedy; Will Wall Street Shift Again?
With the S&P 500 index nearing overbought territory, the CNN Fear & Greed Index has also reached a greedy position at 70. Will this wave of Trump’s bull market come to an end?
The two major trading departments on Wall Street have recently made bold predictions for the U.S. stock market: this year, they recommend buying heavily into the stocks that have fallen the most, to obtain quick short-term profits. As the major indices have erased this year’s losses, these companies are now indicating that traders and other speculative buyers who missed the opportunity will seek to catch up before the next wave of turmoil triggered by tariffs hits.
Can Wall Street giants turn the tide this time? Or will Trump have more astonishing moves? Let us wait and see!
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