Under normal circumstances, the Fed's interest rate cut is good for the market. Why is it the reason for the decline now? In fact, this is the problem of market mediation.
When the US dollar raises interest rates, market funds will slowly flow to the United States, and the United States can fully leverage at this time, so this is why AI technology stocks can double.
Interest rate cuts mean that the arbitrage of the US dollar will be weakened. Capitalists have no nationality distinction. They will choose assets with higher profits to avoid this arbitrage.
From a historical perspective, the Internet bubble in 2000 and the subprime mortgage crisis in 2008 were both caused by interest rate cuts. Now the legal currency is depreciating. The debt snowballs of various countries are getting bigger and bigger, and the credit crisis will become more and more serious.
The yen raises interest rates, and before the US dollar cuts interest rates, the market will naturally adjust automatically, and the problem of economic recession has not been completely resolved for the time being.
Only when the interest rate cut is thoroughly implemented can the market return to the outbreak period after a major reshuffle. Now we just need to wait for the implementation of the interest rate cut!
