THE HARSH TRUTH......THE FED CUTS INTEREST RATES but THE MARKET IS STILL FACING A DOWNTURN 😭
Below is my perspective and information extracted and gathered from various sources. If there are any mistakes, please overlook them.
1. Cutting interest rates because the economy is deteriorating
The FED is cutting interest rates with a rather uncomfortable hawkish stance, which makes the market fear "Something worse" and the market is no longer bullish on the interest rate cut but looks at the reason for the cut.
2. The accompanying "Hawkish" message (Hawkish Cut)
The FED usually provides a message or a "policy roadmap" (Guidance) accompanying the interest rate decision. If this message is not sufficiently "Dovish" (softening) as the market expects.
3. The crash on October 10 is still a horrifying mark for most people in the market. I also lost a significant amount in one account. Borrowing SUI even though the borrowed amount is only 2/5 of the deposit amount…really painful
4. Expectations for interest rate cuts in 2026 have been reduced from 3-4 times to only 1~2 times.
But the future is unpredictable, we all hope for a true uptrend year. Keep a close watch on the market to clearly guess the direction, my friends.
