1. The biggest beneficiary of the Fed's interest rate cut is the US stock market.
2. After this interest rate cut, there may not be hot money flowing into China's A-shares or real estate;
3. Even if the interest rate is cut, it is still recommended to revise the investment thinking and logic of the past two or three decades. Now is no longer a real estate expansion cycle. Investors should consider holding core assets, reducing non-core assets, reducing leverage, and considering the comprehensive cost of holding.
In addition, why is a 50 basis point interest rate cut a huge positive?
First of all, the so-called "50 basis point interest rate cut means that the old Americans are going to decline" is outdated. The premise of this statement is that the Fed knows some hidden worries that the market does not know. The reality of weak employment is a matter of the table. As we all know, there is no need for the Fed to do anything to tell the market something. The reality is well known, so the focus of the Fed's actions is "how to deal with" rather than "what to tell the market". Secondly, if the interest rate is only cut by 25 bp, it will pull all market participants with memory back to the terrible memory of March 22. In the face of high inflation, the Fed only raised interest rates by 25 bp, which was seriously behind the curve and brought about a big crash. This terrifying sense of déjà vu will make the market highly nervous and over-interpret every subsequent data. There is no meeting in October, which means that the Fed cannot respond to the data in a timely manner. Powell is aware of this and he cannot repeat the mistakes of 22 years.
