M expects the Fed to cut interest rates by 25 basis points in September, November and December, which is slightly lower than the current market expectations.
If the Fed continues to cut interest rates by 25 basis points, it will lead to greater market volatility. First, the money flowing into the market will be very slow. The continuous flow of funds into the market will lead more people to believe that the US economy is in recession, so the decline in the currency circle will be very volatile. The possibility of a sharp drop after the interest rate cut will increase, money will become worthless, and the market trend will also shrink in a short period of time, generally leaning towards bearishness.
Facing the arrival of interest rate cuts, it is recommended to start making two preparations in September:
1. In the case of a sharp rise in the market in early September, you can clear 60% of your positions and wait for the market to fall further. Buy at the price of the big cake mining machine, and buy 10% of your positions for every 1,000 points drop.
2. The market is low in early September. Wait for the basic points after the interest rate cut to come out and then sell in batches after a sharp rise. Buying on dips is an opportunity in the bull market!
