The fear index reached 31°, which is in the fear zone
Who would have thought that when interest rates were about to be cut, the market would be so desperate, and many people would turn short.
Perhaps the "312 Incident" back then was also so desperate.
No! The March 12 incident in 2020 is even more desperate than now...
At that time, many believed that humanity might be wiped out by the virus, the economy would be set back decades, and the crypto market might be at zero. Even though the market plunged 60%, there were still many people selling.
And now, no matter how pessimistic, no one thinks that the currency circle will return to zero.
People who have experienced the 312 incident have certain standards for panic psychology. The flip side of a plunge is a surge.
The U.S. economy can no longer afford it, and interest rate cuts will not be delayed for too long.
Interest rate cuts are the most certain macroeconomic benefits for investors. Once interest rate cuts begin, the trend of dollar depreciation will be irreversible.
The current decline in the dollar exchange rate has just begun.
Once the interest rate cuts really start and the currency depreciates, shorting or lending the US dollar and buying high-quality assets will become the mainstream investment concept.
Even risky assets may be driven to highs.
The tidal movement of interest rate cuts may begin at any time.
At any moment, there may be a turning point in the market.
History will not repeat itself, but it will be similar. On the eve of the interest rate cut, the public was generally fearful, and then the trend reversed.
The harder it fell before the interest rate cut, the harder it rose after the interest rate cut.