When it comes to the Federal Reserve lowering interest rates, don't give me any nonsense like 'good news is fully priced in is bad news.' I’m telling you straight—this is a big deal! It’s not just a simple policy adjustment; it’s a lever that can reshape the global economic landscape, do you understand?
Let’s revisit the past: back in 2020 during the pandemic, the U.S. stock market was melting down every few days, like a free fall. The Federal Reserve gritted its teeth and directly cut interest rates, pulling the U.S. stock market out of the ICU and stuffing it into a KTV. The A-shares also skyrocketed from 2650 points to 3700 points, rising for a full year! Who made money during those two years? Companies dared to expand, and ordinary people dared to spend; life was pretty good.
Then, at the end of 2021, as soon as the Federal Reserve hinted at raising interest rates, the A-shares immediately plummeted from 3700 points to 2900 points, dropping 800 points in four months! The entire rate hike cycle was a bear market for A-shares; who wasn’t complaining about being broke during those years? Life was as tight as a belt.
By September 2024, the Federal Reserve was lowering interest rates again, and China followed suit with a big move, creating the '924 market'—A-shares surged 1000 points in six days! This is no coincidence; the Federal Reserve's interest rate policy is the guiding stick for global capital flow, and our average person's wallet dances to its tune.
Now, after the Federal Reserve has stopped lowering rates for 9 months, it’s preparing to take action again. Based on past experience, China will definitely follow up with policy measures. Don't expect another massive surge like '924,' but a sustained rebound like from June to August this year can definitely happen again! I dare assert that from late September to early October, A-shares are very likely to show a trending market; in the next two to three years, the Chinese economy will rebound from the bottom, and everyone’s lives will noticeably improve.
Remember, don’t get bogged down wondering if a rate cut is 'good news fully priced in'; the key is to look at the turning points in the big cycles! The Federal Reserve's rate cut is the clarion call for an economic counterattack, and only those who follow the trend can seize the opportunity. What you need to do now is to listen to the signals, position well, and wait for your chance to profit! Don’t wait until the market rises and then regret it; by then it’ll be too late to cry!
Is the wind too cold? Focus on the divine, we provide you with the most exciting stage!
