TL;DR
Trump’s tariff announcement created an artificial market surge, enriching insiders while leaving average investors in the dust. History repeats itself, with the wealthy profiting from rigged games.
Story
Trump’s “Tariff Pause” Pump and Dump: Deja Vu All Over Again?
John, a retired teacher, watched his retirement savings dwindle as the market tanked. Hours later, a presidential tweet sent markets soaring—but not for John. He’d already sold, spooked by the volatility. This isn’t a new story. It’s a tale as old as the markets themselves, dressed up in a new suit.
Here’s how the “pump and dump” unfolded:
- The Setup: Trump hinted at positive news (tariff pause), creating anticipation and uncertainty.
- The Pump: His announcement sent markets skyrocketing.
- The Dump: Those “in the know” (likely including Trump’s associates) profited by buying low before the announcement and selling high after.
- The Victims: Average investors like John, caught off guard, either lost money or missed out on the artificial surge.
‣ Pump and Dump: A scheme where the price of an asset (like a stock) is artificially inflated (pumped) through misleading positive statements, then sold (dumped) at the inflated price.
This echoes past market manipulations, from the 2008 subprime mortgage crisis to the Enron scandal. History repeats itself because human greed and regulatory loopholes never truly disappear.
‣ Subprime Mortgage Crisis: A crisis triggered by the collapse of the housing market due to risky lending practices. ‣ Enron Scandal: A massive accounting fraud that led to the downfall of energy giant Enron.
John’s story is a microcosm of the larger issue: the rigged game of market manipulation. While the wealthy profit, ordinary investors bear the brunt. How many times will this cycle repeat before real change happens? Don’t hold your breath.
Advice
Don’t trust sudden market surges based on political pronouncements. Investigate before investing, and remember: if it sounds too good to be true, it probably is.
Source
https://www.reddit.com/r/investing/comments/1jvwzfa/the_gap_between_the_rich_and_poor_just_widened/