About interest rate cuts:

According to past experience and history, there is a delay in the Fed's interest rate cuts and interest rate hikes. (Delay) In plain words, it is not that the market will fall sharply as soon as the Fed says it will raise interest rates, nor will it fall sharply as soon as the Fed says it will cut interest rates.

For specific historical reference, the bear market decline in the last round of interest rate hikes we experienced was not that the market started to fall sharply as soon as the Fed confirmed the interest rate hike and the interest rate hike was implemented. Instead, it was in the actual interest rate hikes that gradually caused large funds to flow into the reservoir of US Treasury bonds.

As long as the interest rate cut is confirmed, the market will definitely be a bull market. Even if the good news turns into bad news, this bad news is short-lived, and the long-term bull market will definitely be a bull market. Therefore, the declines in this case are all golden pits, and they are all the best opportunities to get on the train before the big bull market breaks out.

When the interest rate cut just started, the positive change from negative to positive was one reason for the decline. Another reason was the short-term depreciation of the US dollar. Before the large outflow of US dollars, the US economy must have had problems before the interest rate cut began. Economic recession, financial crisis and other uncertain economic crises may bring about black swan events. For details, you can recall the 312 incident caused by the YQ in 2020, the seven circuit breakers of the US stock market, and the coin market was cut in half for two consecutive days.

In a word, when the interest rate cut really starts, it may be accompanied by a black swan, which is often called a golden pit, and it is time for us to try our best to turn a bicycle into a motorcycle.