Short- and medium-term transactions are based on human nature! Long-term investments are tied to economic expectations! The Federal Reserve's policies are often reduced to tools for capital hedging!
As the title says, in anticipation of interest rate hikes and in the process of interest rate hikes, US stocks will not necessarily fall, and this decline is only reflected in industries that are highly sensitive to interest rates. Even the decline in stocks in these industries is limited to the end of the interest rate hike cycle where the decline quickly bottomed out! In the expected phase of the interest rate cut cycle, it quickly rebounded and even hit a new high!
This is because short- and medium-term trading is based on human nature. Next, the interest rate reduction cycle brought about a new high of discomfort in the stock market. Instead, the stock market ushered in a short-term rapid adjustment! It ends until the end of the interest rate reduction cycle! From a trading perspective, this is the use of humanity, and it is also a requirement for low-cost capital to enter the market! So at the same time, too many institutions are singing and losing more in the stock market. The weakening of the US dollar is not the strengthening of gold, but the trend of the US dollar and gold is the same as the trend of the US dollar and gold in the interest rate hike cycle! Let's go weak together!
Meanwhile, with the restructuring of the global industrial chain and the restructuring of capital investment and financing of the US dollar after the interest rate hike cycle, the trend is that the US economy will continue to improve, and corporate profits will further improve! This is just like a history of revisions and revisions; it's not simply a repetitive delay! This explains very well that long-term trends are tied to economic expectations!
And all of this is achieved through the agency's large print press! It's just that if you want to profit, you have to know how they use policy tools to hedge in stages!
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