The CPI data has once again increased the probability of an interest rate cut, which is a long-term positive for the entire financial market. Why do we say it is long-term? Because as long as the interest rate is cut, it will be good for the financial market. The interest rate cut will take a process, but as long as it starts, it is a good start.
The cycle of the financial market starts with interest rate cuts, then slows down the rate cuts, then stops the rate cuts, then floods the market with money, and finally starts to raise interest rates, then slows down the rate hikes, then stops the rate hikes, and then lowers interest rates again, and the cycle continues.
This is the law of operation of the global financial market, and this law has never been broken. Once the interest rate cut begins, there will be no reversal of interest rate hikes. Therefore, once the general direction is determined, the rest is simple. There is no financial market that has cut interest rates several times and then suddenly raised interest rates. I have never seen such an operation.
The same rule applies to the cryptocurrency world, with a bull-bear cycle that lasts four years. Once you enter a bull market, you will never return to a bear market.
There is no such thing as a bear market before the bull market is over, nor will a bull market suddenly start during a bear market. This is one of the reasons why I always see bulls. It is normal for a bull market to have a correction, but no matter how much it corrects, it will not return to a bear market. At least the rule of a bull-bear cycle of four years has not been broken so far.
Some people may ask, what should we do if the bull-bear cycle is broken this time, which used to be every four years? If you have such an idea, I suggest you exit the cryptocurrency circle as soon as possible.
Just like the four seasons of the year, spring will be followed by summer. Will it return to winter just because there are a few snowfalls in spring and the weather turns cold? Obviously not. No one would ask whether the law of the four seasons can be broken.
But if you really want to argue, no one can beat you.
Since you want to develop in the financial industry, you must understand its rules. Only in this way can you increase the probability of victory. Since all aspects are good for the financial market, why didn't the market rise directly, but kept rising and falling here? This can only mean that the main force of this bull market has a big appetite. There are many people who are bearish at the moment, so the main force will definitely find ways to get more people to join the bearish team. The more people are bearish, the better it is for the main force.
In the past six months, the main force has been cultivating the bear market mentality of retail investors. As long as the market rises a little, they believe that it will fall after the rebound. Just look at how many people around you think that the bull market is still there.
Don't be affected by the current pullback. This is just an appearance. What we need to see is the essence. We must plan ahead. If you wait until the market really picks up, you will miss the opportunity.
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