🔥This article will definitely help you🔥
Today we will mainly talk about why there will be favorable market conditions after the interest rate cut.
The Federal Reserve has officially announced a 50 basis point cut. The expected narrative has been finalized, so no further analysis is needed!
Before the global outbreak of the novel coronavirus, the Federal Reserve's interest rate had been maintained at a historical low of 1.5% to 1.75%. In March 2020, the Federal Reserve urgently cut interest rates by 50 and 100 basis points twice. With the global shutdown, the financial market rose against the trend. This is a way to release money, make borrowing extremely cheap, let money circulate wildly, and protect people's livelihood through inflation. The carnival in the financial circle has begun. The currency circle, stock market, bank brokerages have all skyrocketed.
As the novel coronavirus recedes, in order to limit the continuation of inflation, the Federal Reserve has resumed a series of interest rate hikes starting in 2022, raising the interest rate to 5.25%. What does this mean? The annualized return is 5.25. The domestic financial products are only around 6%, and the risk probability is completely different. Global assets are pouring into the United States for storage, turning the internal assets of the United States into dead money, no longer circulating globally, and global investment and consumption behaviors are both declining. The United States has also solved the problem of inflation. At present, the world has clearly entered a larger economic recession. If the United States does not cut interest rates for its own selfish interests, it will definitely affect the war. Of course, the US recession is also very serious, so serious that it can no longer bear it, and it has to pay more than 1 trillion in interest every year, so the interest rate cut meeting last night is of global concern.
Here comes the point!!!!
There is only one reason for the bull market in 2020, which is the liquidity brought by the interest rate cut. Brothers, don’t believe any stories that can drive the rise. Only capital injection can drive the rise. Stories can only drive leeks to enter the market. The transmission of stories always lags behind the layout of capital.
The rise at the end of 2023 is because the Bitcoin ETF started to rise after it was approved. Let's look at the K-line. After the US Securities and Exchange Commission (SEC) first approved it on January 10, 2024, local time, the price of Bitcoin was 41,000. With the approval of the ETF, traditional funds entered the currency circle and funds were formed, starting to rise to 73,000. Large funds are lagging. After the interest rate cut, funds began to slowly flow from the United States to the financial markets of countries around the world, and China will then begin to raise interest rates to absorb global assets.
Trading advice: Do not sell any of your assets in the past three months. If you are short, invest in your own currency.
The captain currently holds the four kings, and the copycats have WIF and OP (OP is trapped, the cost is 2.6 yuan)
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