The Federal Reserve cuts interest rates, capturing global attention.
At 2 a.m. Beijing time on September 19th, the Federal Reserve finally gave everyone a reassurance by announcing a 50 basis point cut in the federal funds rate, which is the first time in four years!
Back in the day, to cure the "headache" of inflation, the Federal Reserve kept raising interest rates like a rocket, adding eleven times in one go.
Now, it's a sudden brake, with a rate cut.
This has caused a stir in the market, with the U.S. stock market first rising and then falling, like a roller coaster.
The domestic response was swift, and the A-share market moved in response.
On the morning of September 19th, the three major A-share indexes rose in unison as if they had agreed.
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Behind this, there are many subtleties.
With the Federal Reserve's rate cut, isn't the dollar relatively devalued?
Naturally, the renminbi appreciates, and foreign capital is attracted, flowing towards us.
Can the stock market not be lively?
The monetary policy space is opened, and new opportunities emerge.
Experts said that with this rate cut by the Federal Reserve, China's monetary policy space is also opened.
What does this mean?
It means that our central bank can now cut interest rates and reserve requirements more conveniently without being so constrained.
For us ordinary people, this is a great thing, and our wallets might get fatter.
A-share market repair, which sectors can be hot?
Speaking of A-shares, that's what everyone cares about the most.
With this rate cut, which sectors can heat up?
Experts said that sectors that benefit from improved liquidity, such as growth manufacturing sectors, small and medium-sized stocks, and financial sectors, are worth paying attention to.
Especially in directions such as autonomous control, digital economy, consumer electronics, automobiles, and high-end manufacturing, the potential is limitless.
But don't rush in, and guard against risks.
We can't just see the benefits; we also need to guard against risks.
Xingye Global Fund has reminded us that although the rate cut is beneficial to the stock market, it also depends on the actual situation.
Now that international gold prices have soared, it might have already discounted the benefits of the rate cut.
At this time, if you rush in, you have to be careful.
The rate cut brings new opportunities, and strategic layout must be cautious.
In short, this rate cut by the Federal Reserve has brought new opportunities to our A-share market, but also new challenges.
We must keep our eyes open, see the situation clearly, find the right opportunities, and then act.
Whether it's gold, oil, stocks, or bonds, we must layout according to our own risk tolerance and investment goals.
Remember, investing is not gambling, and only by being steady and solid can we win in the end.
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