The logic behind the surge in US stocks is also very simple. In order to complete the drainage of the second reservoir, large institutions continue to buy US stocks to raise stock prices and attract investors' funds into the stock market.
For many investors in the A-share market, this is an eternal pain in their hearts. On the surface, our economic development is very good, but it cannot be reflected in the stock market.
Look at the US stock market. The economic development is just like that, but it keeps rising. The manipulation behind this is also one of the reasons.
With the funds of ordinary people entering the stock market, Lao Mi has spent a long time of leisure. He prints money to buy all over the world when he has nothing to do. There is also a reservoir of US stocks in China to absorb funds, and the impact of inflation is not great.
But you can't stop printing. Everything has a limit. When the US stock market rises wildly and exceeds the US economic base too much, the US stock market will also collapse.
So in this round of bear market, the United States has to start raising interest rates to control inflation.
Of course, there are many reasons for the interest rate hike, which will not be elaborated here. Inflation is the fundamental reason for the interest rate hike. Once inflation exceeds the limit, the US stock market will also collapse.
After all, it collapsed once in 2008.
Therefore, the Americans urgently need to find a third reservoir, which should be able to perfectly solve the pain point of the Americans having to print money and control inflation.
This reservoir is: cryptocurrency