đ¨ TRUMPâS 2026 MARKET PLAYBOOK â CRASH FIRST, PUMP LATER
Most people think 2026 = straight rally.
I think theyâre early.
If this roadmap plays out, we get pain first â liquidity later.
Hereâs the sequence Iâm watching:
1⣠THE CRACK
The U.S. economy isnât as strong as headlines suggest:
Layoffs rising
Bankruptcies ticking up
Credit stress building
Housing demand rolling over
Sellers outnumbering buyers
Thatâs late-cycle behavior.
A correction in the next 2â3 months is very possible:
S&P 500: -10% to -15%
Nasdaq: -15% to -20%
Crypto: likely deeper drawdowns, maybe capitulation
Crypto doesnât decouple in stress.
It exaggerates it.
2⣠THE BLAME SHIFT
During the downturn, expect pressure on Jerome Powell.
Narrative writes itself:
âRates stayed too tight.â
âLiquidity wasnât provided.â
âThe Fed reacted too slowly.â
Powellâs chair term ends May 2026.
That timing matters.
If markets are weak, he becomes the convenient scapegoat.
3⣠THE PIVOT
If Kevin Warsh steps in as Fed Chair, easing becomes more likely.
Yield curve control.
Lower long-term yields.
Cheaper borrowing.
Cheaper borrowing = liquidity.
Liquidity = higher asset prices.
Layer on potential fiscal moves:
Tariff dividend checks
Tax cuts
Pro-crypto regulatory clarity
Thatâs fuel.
4⣠THE ELECTION INCENTIVE
Midterms hit Q4 2026.
Markets rising + cash in votersâ pockets = powerful optics.
Once prices climb, people forget the pain.
The sequence could look like this:
Early 2026 â Correction + blame
Mid 2026 â Fed shift + easing
Late 2026 â Rally into elections
My Take
The next few months could be volatile.
If we get that correction, itâs not the end â
itâs the setup.
Markets donât move in straight lines.
They reset, then reprice.
Plan for both phases.
