Trump signs an executive order to create a sovereign wealth fund. Just read it on Financialjuice. What do you think how many trillions will be bought on US equities with that fund ? It can fuel the bull market a lot I think, at least for 2025 and 2026. VERY BULLISH MID TERM FOR US STOCKS. Any opinions on that breaking news from President Trump ?
what makes you think a US sovereign wealth fund will buy trillions in US equities? these funds diversify
Because of Trump, he says America first, so US companies will be supported (mainly). Maybe strategic partnerships like Taiwans TSMC Semiconductor company I can imagine a US stake into too, because they are so important for the US company. Maybe this US fund will hold at least 25% minority of all shares here. Something like this approach I would assume. Maybe a US stake also into commodities companies which explore on rare earths something like this.
In other countries, this normally means government interference in the conduct of business (through board members after x% ownership). The idea itself is good for countries that have nationalized natural resources (mostly oil), but the key questions for the US are... 1) how are you going to fund it? and 2) what ever happened to the USD 37 trillion in debt?... and you can imagine the answers to both questions
this is one fo the the stupidest things. us sovereign fund is marked in us dollars, to buy what exactly? chinese yuan or us treasury? it is entirely circular logic
BREAKING NEWS Trump signs an executive order to provide bald eagles rogain, propecia, and minoxidil so they can grow trump hair.
Two key points: 1. The money for a wealth fund has to come from somewhere, either higher taxes, or reductions in various benefits, or spending. Thus, basically a zero-sum result.. 2. Basic Trump tactic is to counter-balance. He imposed taxes, which hit the stock market, so he counters with possibility of wealth fund to support stocks. Even if likely, & more than a token amount, it would likely take months to years to establish.
He wants to use taxpayers money to buy Tiktok. Viktor Orban does the same thing in Hungary aka steal taxpayer's money.