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As of October 22, 2025, President Donald Trump and Chinese President Xi Jinping have reached a preliminary framework for a trade deal, amidst ongoing tariff threats that contribute to volatility in the stock market. The Shiller CAPE ratio is currently at 39.5, a figure higher than before the 1929 and dot-com crashes, indicating an overvalued market poised for potential drops with any disruptive news.
The current market remains fragile, with a high reliance on favorable conditions, and even minor shocks can severely impact investor confidence. Amid these uncertainties, analysts recommend a cautious investment strategy that includes minimal exposure to highly speculative AI stocks, and a diversified approach incorporating non-U.S. stocks and traditional hedges.
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