The rise of US stocks and A-shares actually represents the beginning of a new global cycle.
Over the past hundred years, there has always been such a rule that economic recovery will first revive the financial economy and then the real economy. Because only after the people who should be reaped are harvested through finance and the funds in hand are increased through finance, more money will flow into the traditional economy and the cycle will be realized.
The Fed's interest rate cuts have increased the amount of money flowing into the financial market, and these funds are fuel, accelerating the start of the bull market. You can't see anything in the short term, but the interest rate cut means that money starts to flow from banks to the global financial market, and the outflow of funds is gradual. This is why A-shares and US stocks will perform well recently.
But this process will not be smooth sailing, just like the recent A-shares, everyone saw that it was rising well and rushed in. In this situation, there will definitely be a correction, because the correction scares those who chased in and makes them dare not enter the market. Secondly, it makes those who have been trapped in the past few years finally see that they have recovered their investment. Don’t sell? If you don’t sell, I will pull back. After the correction, it will rise a little bit, and you will recover your investment. Will you sell? You will definitely sell. Then as long as the previous holders sell, and the newcomers buy and sell at a loss, and all the chips are handed over, the market can rise better.
A-shares and US stocks are only part of many financial markets, and the stock market is very limited. But the B-circle is different. The blockchain industry belongs to the global market, and the development of blockchain is still in the early stage of infrastructure construction. It is also a financial industry, and its potential is greater than that of A-shares and US stocks. It is an emerging market and is gradually being recognized by the world. The answer given by the above logic is: the recent good performance of A-shares and US stocks is a sign, indicating that the financial market will explode next, and the most likely to explode is the "cryptocurrency circle".
Of course, it doesn't mean that the market will only rise and never fall. The market will definitely rise and then fall back. This is a rule. The market cannot rise every day, so don't think that it will fall sharply just because it rises and then falls back. If you have such an idea now, you will definitely be severely punished by the market.
The correction and shock, rebound and decline in the past six months, are not just to trap those who chased in February and March, and make them sell at a loss, and are not just to make most retail investors believe that "a rebound will lead to a decline, and after the rebound, a new decline will start and break a new low". With such a mindset, retail investors will worry about a decline when they see a rise next time. If there is a slight correction, retail investors will be more convinced that there will be a big drop, and they will wait and see with empty positions, or even short sell. But next, the main force will definitely give these retail investors who have fallen into the trap a blow.
Especially recently, the market fluctuates faster and faster. After a wave of rise, it falls quickly, which makes people feel that the air force is very strong. It rises for a few days and falls in one day. This shows that the market has begun to accelerate, which means that the market is about to change! Next, wait patiently for a big positive line, and thousands of troops will come to meet! As long as there is a direction and a goal, all the waiting is worth it.
