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Expert Warns: The Worst Phase of the Stock Market Is Not Over, June Set to Be a Key Downturn Period

Expert Warns: The Worst Phase of the Stock Market Is Not Over, June Set to Be a Key Downturn Period

According to reports from the finance center, the stock markets globally are experiencing significant fluctuations following U.S. President Donald Trump's announcement of equivalent tariffs, impacting the Taiwanese stock market as well. On the 21st, the Taiwan Stock Exchange opened lower and continued to decline, closing at 19,106.2 points, down 288.83 points, or 1.49%. The trading volume reached NT$207.66 billion, with the three major financial institutions selling NT$6.257 billion more than they bought. Discussions regarding the future stock market developments have surfaced online, where some netizens believe we are still not at the worst point. They pointed out that in June, the U.S. government will face a critical date with $6.5 trillion in national debt maturing, which could trigger an asset crisis.

This netizen emphasized that the $6.5 trillion U.S. national debt is set to mature as a result of short-term zero-interest bonds issued during the pandemic. Currently, the U.S. treasury has only a few hundred billion left, and Trump's actions recently have significantly diminished global trust in the U.S. They questioned if any international institution might initiate a downgrade of U.S. bonds. If this occurs, it could lead to the largest asset crisis worldwide.

As June approaches, this netizen believes the stock market is preparing for a severe drop since both yearly and quarterly lines will likely show a sharp decline in the upcoming thirty trading days. His comments have attracted various responses, with some agreeing that the Federal Reserve is in a dilemma, while others remain skeptical about the outlook.