According to Edward Dowd, US treasury yields closed flat following the Moody’s downgrade, signaling limited immediate impact on fixed income markets. Dowd highlights that over the next 12 months, yields are expected to decrease as economic realities catch up, with the housing sector leading a downturn and the current AI stock bubble deflating. This environment of lower yields and a potential stock market correction may drive increased demand for alternative assets, including cryptocurrencies, as investors seek yield and diversification amid traditional market volatility (source: Edward Dowd on Twitter, May 19, 2025).

According to André Dragosch (@Andre_Dragosch), a recessionary environment was present before Trump's presidency, marked by monetary tightening, yield curve inversion, money supply contraction, and a housing downturn. Dragosch suggests that aggressive tariff hikes could act as the necessary shock to trigger a recession, which could significantly impact trading strategies, especially in markets sensitive to economic downturns.