Before each interest rate cut by the Federal Reserve, the market often experiences a wave of "final decline".
Why? Because everyone needs to push panic to the extreme.
Short sellers desperately spread bad news, claiming that the economy is about to collapse, companies are going bankrupt, debts are about to explode, and jobs will be lost, as if tomorrow is the end of the world.
But the reality is often different. The last few major corrections, such as in 2008 and 2020, were actually just emotional panic.
Short sellers take the opportunity to harvest, while long traders are washed out, and institutions quietly buy in at the low points.
The current situation is quite similar, with the media and Wall Street continuously pushing recession narratives. Many people are afraid and retreat, but this might just be what they are waiting for—the "final injection"—to drive market sentiment to its lowest point.
A real bull market is often slowly nurtured in such extreme panic.
So, the "final decline" is not the end, but may be the beginning of the next opportunity.
After all, bull markets often end with sharp declines, usually closing with a needle.
In simpler terms: the final decline is actually an opportunity left for the smart investors to get on board.