I see some friends are worried about the tense situation in the Middle East and the world, and question whether there is still hope for the bull market.
Let me analyze it for you and talk about this topic by the way.
In fact, the conflicts in these regions may be part of the chain reaction of interest rate cuts.
The Fed's interest rate cut means that the US dollars deposited in the United States by various countries may need to be withdrawn and invested in those national assets with potential.
The United States naturally does not want the dollar to flow out, so it may create instability externally, such as triggering conflicts, so that those funds that want to invest overseas can only wait and see.
China's surrounding areas may also face turmoil, but China is strong and can maintain regional stability and keep neighboring countries peaceful.
Therefore, the essence of conflict is to promote economic development, not to make the economy worse. These small-scale conflicts will not lead to the world war that everyone is worried about.
Therefore, this is only a temporary phenomenon. The real purpose of the United States is to prevent capital outflows, not to really want to trigger a large-scale war. Once the capital of various countries is convinced that the situation is stable, the financial market may experience explosive growth, and those funds that are ready to move will pour in.