Last night's CPI data was positive, why did the market fall instead of rising?
The CPI data further raised expectations for interest rate cuts, which is a long-term positive for the financial market.
Interest rate cuts are usually a process. Once started, it means the beginning of a positive trend.
The rules of the financial market follow the cycle of interest rate cuts, water releases, and interest rate hikes. Once interest rate cuts begin, interest rate hikes will basically not be reversed.
The currency circle also has similar cyclicality, usually a bull-bear transition every four years. Once you enter a bull market, you usually don't return to a bear market.
Similarly, a pullback in a bull market is normal, but it won't easily return to a bear market. Some people may question whether the four-year cycle will be broken. If you are so worried, you may want to consider exiting the market.
Just like the change of seasons, spring will not turn back to winter because of a snowfall.
Understanding the laws of the market can increase your chances of winning. The current market is fluctuating, indicating that the main bull market has a big appetite. Many people are bearish, but this is exactly the strategy of the main force to attract more retail investors to be bearish. In the past six months, the market has been cultivating retail investors' bear market thinking. Don't be confused by short-term pullbacks, and you won't miss the opportunity if you plan ahead.