It's been a long time since I shared my views. A long time ago, I mentioned that the big pancake would inevitably break through, and now it's reached 100,000. In relative terms, I still feel that we are only at the early stage of the mid-term.
Yesterday's decline was merely a part of the Federal Reserve's management of market expectations. The market had already anticipated about two rate cuts next year, and yesterday's drop was just an excuse for a correction. However, many people think it might be a bear market, but that's not the case.
We need to understand two core things.
1. The United States is still in a rate-cutting cycle; it's just that the extent and frequency of rate cuts have decreased. What remains unchanged is that we are still in a rate-cutting cycle.
2. This point is quite important: the U.S. economy is still very strong. As long as the economy remains robust and companies continue to have decent revenue growth, the market will rise. After all, when the economy is doing well, companies are making money, and liquidity will be sufficient.
So, based on the above, there’s actually no need to worry. After all, the Federal Reserve is only reducing the number of rate cuts. However, the liquidity itself has not been drained; instead, due to the strong economy, liquidity may actually become even more abundant.