Last night the Fed showed a dovish attitude, which made many people expect interest rates to rise soon. But in fact, it may be unexpected, and if you have not experienced it, you may not understand this.
Many people in the market do not fully expect interest rate cuts, and the accuracy of this expectation is very important because it directly affects your investment returns this year.
Why do people generally believe that interest rate cuts will lead to stock market rises? At present, the market generally believes that interest rate cuts will lead to rapid market rises! ! !
However, in fact, there are usually good market conditions before interest rate cuts, and there may be declines during the interest rate cut. The real surge usually occurs within one or two months after the interest rate cut.
Why is this so? Because interest rate cuts are essentially injecting liquidity into the market, and in the months after the interest rate cut, these funds will really flow into the market, resulting in market gains that are usually larger than at any time during the interest rate cut, and more intense!
It is crucial to judge the fundamentals of market trends, including the previous Mentougou incident.
I have seen some people calculate how much Bitcoin to sell when the Mentougou incident occurred, and then some situations occurred, and then the price rose again. Why is this so? There is no definite reason, because the Mentougou incident often only occurs in panic, destroying the order wall that the main force wants to break. Their purpose is to achieve a certain goal.
However, once the news is hyped once, the second and third hypes are usually carried out during the market rise, and these news are often meaningless and just noise. Did you pay attention to these news later? I guess you didn't pay attention!