We reviewed asset performance when the Federal Reserve start...
We reviewed asset performance when the Federal Reserve started its previous rounds of interest rate cuts. The rules are as follows:
(1) U.S. stocks: Most of them rise, and will continue to fall only when interest rates are cut in conjunction with recession $S&P 500 Index (.SPX.US)$ ;
(2) U.S. Treasury bonds: Yields all show a downward trend; $iShares 20+ Year Treasury Bond ETF (TLT.US)$
(3) The US dollar: mostly weak in the short term, with no consistent pattern in the medium and long term;
(4) Gold: Most of them are strong, and the mid- to long-term rise is more obvious; $SPDR Gold ETF (GLD.US)$
(5) Crude oil & copper: Most of them are weak in the short term, but there is no consistent pattern in the medium and long term.
It should be noted that the current market interest rate cut expectations have basically reached the upper limit. If they are in line with expectations, the impact will be relatively limited; however, if the interest rate cut is less than expected, it will lead to a reverse correction in asset prices, and we need to be alert to this risk.
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