Hey, friends, today we are going to talk about a topic that may make your wallet both excited and nervous: the global interest rate cut trend! What the market is most concerned about now is the next move of the Federal Reserve. Will it continue to hold on? And in the interest rate cut trend, will Chinese assets become a "hot commodity"?
It is said that with the advent of the global interest rate cut wave, foreign giants have acted very quickly and have quietly bought up Chinese assets. It can be seen that with the start of the global interest rate cut wave, Chinese assets have quietly become "hot commodities".
Interest rate cuts usually occur when the economy needs stimulus, such as now that the global economic growth is slowing down and central banks around the world are taking action. So, what effects will interest rate cuts bring?
1. **Stock market carnival**-- When interest rates fall, corporate financing costs are reduced, and theoretically there is more money to expand the business, the stock market tends to perform well. However, don't forget that market sentiment is also important, and sometimes expectations are more powerful than actual effects!
2. **Turbulence in the foreign exchange market** Interest rate cuts will make the domestic currency less attractive, causing the exchange rate to fall. This is good news for export-oriented economies, but for those who like to go abroad to shop, they may have to spend more money.
3. The double-edged sword of the real estate market - low interest rates, less pressure on mortgages, and buying a house seems to be easier. However, this may also lead to rising house prices, leaving some people with no choice but to sigh.
4. **Bitter Coffee for Savers 2**--For those who love to save money, interest rate cuts mean less income from deposits. You may find that the money in the bank is no longer making money like before.
Comparing the data, major central banks around the world have lowered their benchmark interest rates several times in the past year. For example, the Federal Reserve has lowered its interest rate from 2.5% in 2023 to 2% now, while the European Central Bank has directly entered the era of negative interest rates. After this wave of operations, global stock markets generally rose, but the exchange rates of many countries also suffered heavy losses.
Global investors have always had a positive expectation for interest rate cuts: monetary policy will become loose, the economy will become vibrant again, prices of various assets will rise, and a bull market will be imminent.
But think about it carefully, can interest rate cuts really bring about a bull market? Here we need to clarify a basic logic, why do global central banks choose to start a cycle of interest rate cuts? Yes, in the final analysis, interest rate cuts are "first aid measures" when the economy faces headwinds, aimed at stimulating borrowing, spending and investment, and behind them is actually the concern about economic recession. In other words, the essence of interest rate cuts is to save the economy, and it is more like a signal that the economy is beginning to decline.
Moreover, although the interest rate cut seems to be a good thing, it is also accompanied by many risks. As investors, we must not only seize opportunities, but also do a good job of risk management. Don't forget that investment is risky, and you need to be cautious and rational when entering the market. After all, the one who laughs last is the real winner! #币安上线NEIRO #新币挖矿HMSTR #美联储利率决议公布在即
