Current thoughts align with a significant potential for a MAGA dynasty if asset deflation occurs, allowing Main Street to succeed against Wall Street.
Current thoughts align with a significant potential for a MAGA dynasty if asset deflation occurs, allowing Main Street to succeed against Wall Street.
In a scenario where the stock market declines and housing prices drop alongside budget cuts and new controls on future spending:
Less deficit spending leads to decreased borrowing, effectively reinforcing the first point.
Wage stagnation could improve due to tighter border security, leading to more disposable income for individuals.
Expectations are that the new budget favors Main Street by reallocating wealth from the top earners through capital gains adjustments and limiting sports team depreciation benefits.
In this context, tariffs seem crucial to the solution.
A hypothesis suggests that major tariffs are on the horizon, as recent discussions indicate that Treasury Secretary Bessent aims to shift Trump's focus from stock market performance to achieving lower 10-year yields. This strategy,