Interest Rate Cuts: Understanding the Rhythm to Seize Long-term Opportunities

There are often voices in the market claiming that "the immediate benefits of interest rate cuts turn into negatives," but I am more optimistic about the market direction following the rate cuts in September— even if there is a pullback, it is more likely to be a normal correction after a rise, rather than a trend reversal.

At its core, interest rate cuts are by no means a short-term stimulus, but rather the beginning of long-term benefits: this year's actions resemble a "prelude," with a genuine interest rate cut cycle likely to unfold next year. As long as this core rhythm remains unchanged, the overall logic of the subsequent market will not be disrupted.

The most crucial test at present is actually the volatility and uncertainty before the interest rate cuts take effect. The repeated fluctuations during this period can be quite testing: if you truly believe in the long-term logic, you must hold firm in your conviction and seize the opportunities to position yourself during dips; if your stance wavers, it is easy to exhaust your energy in the back-and-forth pull, missing the rhythm and ultimately falling into a passive position.