Market Analysis

Actually, I believe this wave of market activity is not difficult to understand. During the New Year period, the U.S. experienced a stock market crash and a bond sell-off.

Later, the U.S. stock market was lifted, leading to a short-squeeze.

In May, the U.S. intended to continue pushing up the stock market for gains, but for various reasons, they gave up, which started the decline of the dollar.

So what are the benefits of the dollar's decline?

Let me explain briefly: global big players use funds to invest in U.S. stocks, exchanging their currencies for dollars at the then-current exchange rate.

Now, their returns cannot keep up with the speed of the dollar's decline. Because during the New Year, the U.S. stock market fell, many people probably did not recover their investments.

Even if the U.S. stock market rises later, the exchange rate decline still results in losses.

This refers not only to U.S. stocks but also to the cryptocurrency market. Many people who exchanged RMB for USD before the New Year have not only failed to recover their investments but are now at risk of further losses from the exchange rate decline. The manipulation methods of the U.S. are truly unsolvable; indeed, gamblers can never outplay the house!