Japan raises interest rates, US stocks collapse, Bitcoin plummets!
The most miserable stocks in the past few days are US stocks and Japanese stocks. They have been falling for a week, and there is no bottom. Many people are looking for reasons.
The first reason is that Japan raised interest rates. Japan had a zero interest rate before, so a lot of capital went to Japan to borrow money and invested in US stocks or the Japanese stock market. For example, Mr. Buffett did this, eating and taking, and making a lot of money.
Once Japan starts to raise interest rates, many capital costs will become higher, and they will have to withdraw from the high-bubble market such as the US stock market. This is a change in the weather vane!
The second reason is that although it is generally expected that the United States will start to cut interest rates in September, now 5 points of bonds will no longer be available. For funds that pursue stability, it is a very good choice to run away from the high US stocks and buy 5 points of bonds. At this time, the bond interest rate will drop next month, so many funds are anxious to withdraw from the US stock market, so as to catch the last train and buy 5 points of US bonds.
This caused a stampede in the U.S. stock market, which has accumulated huge bubbles in recent years. At this time, the market began to fall continuously.
The third reason is the uncertainty brought by the U.S. election. Basically, there are declines or fluctuations in the 2-3 months before the election every year. There is basically no smooth rise, because I don’t like uncertainty. Once the election is settled, the market will start to heat up.
However, the interest rate cut is a real positive, so there is no need to panic. At most, the market should rise by the end of the year. Although there is speculation about recession expectations now, this is only a short-term phenomenon. Don’t worry, the market will eventually rise because of the interest rate cut, including Bitcoin. Each round is a cycle that repeats itself.
Strengthen confidence and grasp the rhythm! In this round of interest rate cut cycle, it is still very hopeful to complete A8 or even A9!
