The market is very excited about the Fed's interest rate decision on September 18. The two options - a 25 basis point or 50 basis point rate cut - each account for half of the market, which is full of suspense.
Imagine if the Fed announced a 50 basis point rate cut with a big hand. Although this strong medicine is effective quickly, it may make the market mistakenly believe that the economy is on the verge of recession in the short term, thus triggering a panic decline of "recession trading". However, please remember that this is only a temporary fog. I firmly believe that in the next six months, the market will usher in spring and flowers. Because the Fed is trying to "take a step ahead", they don't want to be led by the nose by the economic recession, but take the initiative to strive for a soft landing of the economy. Therefore, I will wait for the opportunity, wait with full positions, and dance with the Fed in the melody of the bull market.
As for the option of a 25 basis point rate cut, it is like a quiet spring rain, moistening things silently. In this regard, I keep an open mind, walk and watch, and wait and see. But no matter what the result is, I still prefer that the US economy can achieve a soft landing in a gentle and firm way, and smoothly transition to a more stable development stage.
In short, every move of the Fed affects the nerves of the market, and what we have to do is to keep up with its pace while maintaining our own rhythm and judgment, and find our own safe haven and starting point in the turbulent market.
