Last night, the Federal Reserve made dovish remarks. Many people believe that the rate cut will bring an increase, but the actual situation may be unexpected.
Many people in the market do not have an accurate grasp of the expectations of the rate cut, which is very important because it is related to whether they can make profits this year. Why do you think that the rate cut will bring an increase? At present, the market generally believes that the rate cut will trigger a surge. However, the actual situation is that it is a good market before the rate cut, and it will inevitably fall when the rate cut occurs. Only one or two months after the rate cut will there be a surge. Why is this?
Because the essence of the rate cut is the inflow of funds into various markets. One or two months after the rate cut, funds have begun to flow into the market, and the increase at this time will definitely be more violent than when the rate cut is in progress!
The basic judgment of the market is very important. For example, in the previous Mentougou sell-off event, I have seen some people calculate how much BTC Mentougou is going to sell, and then predict the price trend. However, why did the price rise again after the Mentougou incident?
There is no special reason, because the Mentougou incident will only have a significant impact on the market when it first triggers panic, breaking through the order wall that the main force wants to break and achieve their goal. However, when the same news is hyped up for the second and third time, its influence is greatly weakened during the rise and becomes meaningless noise.
