US stocks surged, and May CPI exceeded expectations. At the end of May, when the Nasdaq was at 17,000 points, I said that this position had 5% upside and 20% downside. It has now risen by 4%, and risks are accumulating. It has been rising continuously in the past few days, and there is already suspicion of reaching the top. Of course, this top is a stage top, and US stocks will make a comeback in the fourth quarter.
When the Fed cuts interest rates, will the market rise or fall? This depends entirely on whether the market cycle is bullish or bearish at that time. Cutting interest rates is a good thing, but because raising interest rates also brings about economic downturn, the market can reflect both the positive effects of rate cuts and the negative effects of economic downturns. The view that rate cuts will definitely lead to increases is very one-sided.
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