The Federal Reserve may cut interest rates, and the global market is closely watching this matter. Let me share my views, and you can see if they make sense.

First, let’s take a look at the United States. The reason why the U.S. stock market is currently so high is mainly because a lot of global hot money is sitting in the U.S. earning interest. Once interest rates are cut, this money will surely flow out in search of higher returns. The U.S. stock market is already quite bubbly, so an adjustment wouldn’t be surprising. I have already started reducing my positions in U.S. stocks, especially in technology stocks.

Now let’s talk about our A-shares. A rate cut by the Federal Reserve is actually a good thing for us; it gives the central bank more room to maneuver, and they might even follow up with some favorable policies. The more water there is, the higher the boat naturally floats; everyone understands this principle. Currently, the performance data for the CSI 300 is already improving, and the worst of the economy may have passed.

However, we also need to be cautious about two points in the short term: First, if the U.S. stock market experiences a significant drop, it could lead to fluctuations in global market sentiment; second, the AI and chip sectors have indeed surged quite a bit recently, and I have already redeemed part of my principal from my Innovation and Entrepreneurship ETF this week, leaving the profits in to continue running. Sometimes, investment cannot be too rigid; when market sentiment comes, no one can stop it.

I remember that after the rate cut last September, A-shares experienced a rally, but this time there are three differences from the last: First, the expectations for this rate cut have been largely digested in advance; second, the market is now at 3800 points, unlike last year when it was at a low; and third, the regulators now clearly want a slow bull market, not a fast bull market.

My own strategy is: I have taken profits from some sectors with significant gains, but I still keep the base positions. Additionally, I have also taken advantage of the dips this week to position in some commodity varieties, such as nickel. If the Federal Reserve injects liquidity, commodities generally tend to rise.

In summary, my judgment is: looking at it long-term, it is definitely positive, but in the short term, we need to be a bit cautious, especially with some sectors that have risen significantly. Opportunities are always there; don’t be afraid of missing out; the key is to manage risks well. $ETH #非农就业数据来袭