Friends, an exciting moment may be coming!
Powell's recent speech at the Jackson Hole annual conference has completely ignited market expectations for interest rate cuts—CITIC Securities' latest report bluntly states: The Federal Reserve is expected to cut rates three times this year, each by 25 basis points! What does this mean? Simply put, the faucet is about to be turned on again, and there may be more money in the market!
Is a rebound in the US stock market coming?
CITIC Securities mentioned that the US stock market may soon stage a "rebound drama." What is a rebound? It refers to those sectors that previously rose less but are particularly sensitive to interest rates, such as the Russell 2000 (small-cap stocks), real estate stocks, and biotechnology stocks, which may rise in succession! It’s like the market wave we saw in July this year when funds began to look for "bargains" and rotated their investments.
Is the global market about to boom?
Powell's dovish remarks not only benefit the US stock market but may also boost global risk appetite! With a slightly weaker dollar, assets in non-US markets become more attractive. Hong Kong stocks, A-shares, and European stocks may all be influenced by this sentiment. Don't forget, when liquidity expectations improve, funds tend to become more willing to buy!
What to do with gold?
As expectations for interest rate cuts rise, gold naturally benefits—low rates mean lower holding costs for gold, increasing its attractiveness. However, CITIC also reminds us to be cautious: if Russia and Ukraine suddenly reach an agreement, gold prices may correct in the short term. So, be careful not to chase high prices; timing is more important than direction!
Xiao Lin summarizes:
Liquidity is the best friend of the market, while expectations are the fiercest fuel for market movements.
At present, the logic of the "interest rate cut trade" is becoming clearer; opportunities may not wait for anyone, but remember: stay clear-headed amidst optimism, don’t blindly chase high prices, and understand the timing before taking action! For trading signals, please check the homepage for daily market analysis and precise intraday wave analysis.
