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๐ New Trump Policies: Who's chillin? Who's cooked?
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2025 was an eventful year, with tariffs being introduced by Trump in April.
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2026 is looking to be just as eventful if not more.
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Trump wants the Fed to keep lowering interest rates, Freddie Mac and Fannie Mae to buy $200B worth of mortgage bonds to lower mortgage interest rates, and credit card companies to cap their APR at 10%.
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The question becomes: How would all of these policies affect the stock market if they were actually implemented?
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โฌ๏ธ Hereโs an easy prompt you can use to find out who the winners and losers would be if Trump's policies actually get implemented:
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โ๏ธ PROMPT: POLICY IMPACT SIMULATION
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Role: Act as a market analyst who explains complex financial policy in simple terms for retail investors.
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Analyze the following proposed U.S. policies as if they were fully implemented:
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1) Fannie Mae and Freddie Mac are required to buy $200B of mortgage bonds.
2) The Federal Reserve continues cutting interest rates.
3) Credit card companies are forced to cap interest rates (APR) at 10%.
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Task:
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1) Explain where money flows
- Who gets cheaper money?
- Who loses income?
- Where does the freed-up money likely go next (housing, stocks, bonds, crypto, etc.)?
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2) Identify immediate effects
What happens right away to:
- Borrowing costs
- Lending standards
- Consumer spending
- Stock market risk-taking
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3) Identify follow-on effects
- What changes after a few months?
- Do banks lend more or less?
- Do asset prices rise because money has nowhere else to go?
- Are there unintended consequences?
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4) Identify winners and losers (publicly traded only)โ
Categorize companies and assets as:
- Likely Winner
- Mixed Impact
- Likely Loser
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Focus on:
- Banks and lenders
- Homebuilders and real estate companies
- Fintech and payment companies
- Consumer spending companies
- โBond-likeโ stocks (REITs, utilities)
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Output:
- A simple Winners vs Losers table
- Include specific company names and assets
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๐ก Why This Matters
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This prompt does 3 useful things for you:
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1๏ธโฃ It turns confusing policy into a money-flow story
- Who benefits immediately
- Who gets squeezed
- Which assets absorb the excess money
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2๏ธโฃ It reveals second-order effects most people miss
- Lower rates + credit caps โ banks lend less, not more
- Cheaper mortgages โ home prices rise, not just affordability
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3๏ธโฃ It trains your "investing muscle" by teaching you to:
- Think in systems, not tickers
- Separate political narratives from market outcomes
- Understand why markets sometimes rise even when the economy feels weak
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