What will happen to the currency market if there is no deep correction in the US stock market before the rate cut?
This is an unpopular topic. I have discussed with friends the topic of the correction of the US stock market before the rate cut this year. There is also a consensus that if the dual crisis of finance and economy caused by the interest rate hike (maintaining high interest rates for a period of time) and the reduction of the balance sheet force the Federal Reserve to adjust its policies and cut interest rates, it will cause the risk market to be in a state of panic and liquidity to be seriously insufficient. In addition, considering the US election and the restart of QE after the rate cut, the risk market (especially the US stock market) will be accelerated. The correction time, that is, the correction will be shortened, and it will continue to rise after a short-term adjustment. But is there a possibility?
Before and after the interest rate cut, there was no deep correction in the US stock market, but a short-term shallow adjustment and continued to rise?
The logic is as follows: Wall Street will always use financial and economic crises to reap the world. Currently, Europe and other countries cannot withstand the pressure of 140 and have started to cut interest rates, causing a sharp drop in the stock market and the collapse of investor confidence. Funds are fleeing (now is also the time for Wall Street to be excited and make plans). If the US stock market falls back deeply at this moment, funds will also choose to avoid risks (European and Asian funds will choose to wait and see and will not enter the market). Therefore, the funds fleeing from Europe and Asia will also decrease or observe and no longer enter the US stock market. This is an important factor. The US's intention is that funds will continue to flow into the US stock market.
QE funds will be used by Wall Street to buy up high-quality assets in Europe and Asia at the same time as the interest rate cut, so as to achieve the purpose of harvesting. However, if funds do not continue to flow back to the United States, the world's finance will be divided, and the US debt problem will be the biggest headache. If funds continue to flow back to the United States, the Eurasian stock market will continue to collapse, and the U.S. stock market should continue to grow, which is likely to happen this time (different from any previous interest rate cuts.
Time will tell us the answer. The currency market should be prepared and not get off the bus easily. At least some bottom positions should be kept to prevent the shallow correction of U.S. stocks from causing insufficient liquidity and the illusion of capital hedging (especially don't believe everything the media tells us) and let us lose precious chips. The big bull market will definitely come, and we must not be thrown off the bus before the bull market.
Are there any short-term surges in the copycat passwords?
Leave 168 and share!
