Recently, U.S. President Donald Trump announced a 25% tariff on imports from Japan and South Korea, but financial markets displayed surprising calm. Investors seem to have already factored in worst-case scenarios, signaling readiness for potential economic conflicts.
Trump's Tariffs and Market Calm
Typically, announcements of new tariffs spark panic in financial markets. However, in this case, stocks and cryptocurrencies remained stable, suggesting that investors have already priced in potential risks, including trade conflicts and even military actions.
Money Supply Growth Fuels Optimism
While geopolitical tension grabs headlines, behind the scenes, we see an increase in money supply. Central banks and governments worldwide have maintained loose monetary policies, injecting liquidity into the system. This often leads to asset inflation, creating a bullish setup for rising stock and cryptocurrency prices.
Prospects for Crypto and Stocks
If worst-case scenarios are indeed priced in and the money supply continues to grow, both traditional and digital markets could experience significant gains. While the new tariffs may create economic strains for Japan and South Korea, the global demand for risk assets appears to be unwavering.
The current market situation indicates that investors have become more resilient to risks, and the growth of the money supply may provide a boost for both traditional and digital assets in the coming months.
