Don't focus on interest rate hikes! The next Federal Reserve chair might be an 'AI'
Put down your candlestick charts and listen to Bai Yue say something heart-wrenching: the way you used to focus on the Federal Reserve's interest rate hikes and cuts may soon be completely ineffective.
Because the next captain is likely not a 'banker' at all, but a 'fortune teller'.
What I mean is the probability maniac Hassett. Who is this person? He is not a traditional Wall Street veteran; he is a former president's economic advisor and a top econometrician.
What does this mean? Imagine that while Powell was driving, he would still check the road conditions; but this 'model fanatic' might only keep a close eye on his preset economic forecast dashboard. Once the inflation data exceeds the standard, regardless of whether the market is convulsing, his model might directly issue the command to 'slam on the brakes'.
This is nuclear-level uncertainty for the crypto market! The traditionalists at least have patterns to follow, but a scholar who believes in a model might make decisions with no 'human' buffer. Bitcoin is the extreme embodiment of market sentiment, and what it fears most is this cold, unpredictable mechanical intervention. Once his model determines that risk assets are overheating, the tightening fist may come faster and harsher than anyone imagines.
What should retail investors do? Listen carefully:
Immediately switch your focus: stop being fixated on 'whether to raise interest rates' and study 'Hassett's economic model philosophy'. The tendencies in his past papers are the source of future storms.
'Format' your positions: assume that future policies will be more erratic and data-driven. Reduce high-leverage 'gambling' positions and increase some foundational positions that can survive severe fluctuations.
Beware of the super volatility on 'data release days': models rely on data, so every time key economic data is released, it could become a moment when the market is 'suddenly attacked', and volatility will soar.
What retail investors need to do is 'patiently wait for opportunities, act decisively and accurately'. Follow Bai Yue to get daily real-time strategy shares + cutting loss guidelines!
