Former trader Steve Burns has warned that the US stock market is likely to face a 50% correction. He says Trump's tariff policies have caused the crisis and that only an agreement with China can prevent further collapse.

Is there a bigger crash coming? This is a question that has occupied the minds of many investors with the intensification of Trump's tariff policies and the collapse of global markets. Steve Burns, a well-known trader and one of the most popular analysts in cyberspace, in an interview with MarketWatch, examined the current market situation and his forecasts.

Why did Steve Burns Cash out all his capital?

Burns held all of his capital in cash on April 3, just as global markets hit hard by Trump's tariffs. He first entered small-company stocks, but quickly withdrew from positions, and according to him, Technical Analysis no longer works. He believes that the market has faced a "collapse caused by tariff anger" whose macro factors are more influential than technical analysis.

The market is on the verge of a 50% correction?

Burns warns that the current crash could last as long as 50 percent, describing it as a" historic crash." Although he is optimistic about the market in the long term, he is extremely pessimistic in the short term and explicitly says that the likelihood of recession and even depression is very high, especially in other countries.

Is Trump looking for a market crash?

In a controversial comment, Burns believes the Trump administration is deliberately creating a bear market to get people to buy bonds and lower mortgage interest rates. "To reduce inflation and mortgage rates, the stock market needs to collapse," he says."He believes the government is steering the market towards collapse so that the Fed is forced to cut interest rates.

What can stop the downward trend?

Burns believes that the only thing that can stop the downward trend in the market is the trade deal with China. He predicts that if such an agreement is reached, the market could experience a big jump. However, he warns that China seems to have not fallen short of pressure and has adopted even more countermeasure policies.

When should it be back on the market?

Burns is looking for signs of a price return to the top of the 200-day moving average to re-enter the market. He emphasizes that it is not the right time for big situations right now and that we should enter with a small amount of capital and wait for future developments.

Advice to long-term investors

Burns recommends that investors with short-term horizons be very cautious and continue their buying and maintaining strategy only if their investment horizons are long-term and are in their third decade of life. He compares the current market conditions to 2000 and 2007, both of which led to sharp falls.

Attractive options after market reform

Burns considers shares such as Alphabet (Google) and Block (square's parent company) attractive options for the post-crisis era. YouTube alone, he believes, gets more views from Disney and Hulu, and will build fintech's future block.

Will the cryptocurrency market suffer the same fate? Can this crisis be an opportunity for long-term purchases? These questions will be answered in the coming days and weeks.