If the market is dumping because of fears around the new Fed chair, Kevin Warsh, that might actually be a good thing.
We’ve seen this story before.
When Gary Gensler became SEC Chair, most people thought it was bullish for crypto. One year later, he ended up hurting almost the entire crypto space with heavy regulations.
When Trump first became president, many believed it would be great for markets and our portfolios. Fast forward to today, and a lot of people are still deep in losses, needing huge moves just to break even.
Markets often get it wrong at the start.
So if traders are already treating Kevin Warsh as “bearish,” expectations are now very low. That means even small positive actions or comments from him could surprise the market and push prices higher.
Sometimes, what looks scary at first ends up being the fuel for the next big move.