Skip to main content

The era of negative US interest rates coming?

Recently, the US Federal Reserve suddenly cut interest rates and US stocks fell sharply. Most investors believe that the ten-year bull market for US stocks has ended.

In terms of the US dollar index, after a period of decline, the US dollar index rebounded sharply, indicating that risk aversion was high, and market funds were flowing to the US dollar to hedge.

The Fed ’s interest rate cuts have not saved the US stock market. The Fed ’s interest rates are now very low. If the Fed continues to cut interest rates in the future, the United States will soon enter the era of negative interest rates. Take Europe and Japan as examples. Negative interest rates have not restored the country ’s economy. The future economic situation of the United States is not optimistic.

The reason for the negative interest rate is that the investment must be profitable, otherwise, it will not be invested. If the profit is low or loss, the investor will directly deposit the profit to the bank. When social investors deposit money in the bank, the money in the society will decrease. Already.

When there is less money in society and the number of commodities does not change, the price of commodities will fall, which is deflation. When deflation occurs, people are reluctant to buy things, because they will know that the price of goods in the future will be cheaper than today, that money will become more and more valuable, and that goods will become cheaper. This has led to a reduction in the country's commodity trading volume, which has affected the country's economic operation.

When it affects the economic operation of the country, the country adopts financial policies to enable investors not to deposit money in banks, but to invest money in society and create more value. When a negative interest rate is implemented and there is no gain in saving money, the funds will flow to society.

It may be that the epidemic has affected the economic operation and caused the US stock market to plummet. If the United States can effectively control the epidemic and implement effective anti-epidemic measures like China, then the US economy will soon recover, the bear market will soon end, and a new round The bull market will soon return.

Popular posts from this blog

Capital Flows Tracking Weekly

Release:  January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports.  Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

Bitcoin will eventually lose its king status! Replaced by Ethereum

 Considering many factors such as real use, user base, technological iteration speed, etc., Ethereum is likely to replace Bitcoin as the mainstream cryptocurrency.  In terms of market trends, the key difference between the current cryptocurrency market and the 2017-2018 bull market is the participation of institutional investors.  However, with the recent slowdown in the participation of institutional investors, the inflow of cryptocurrency ETFs has decreased, alternative currencies have emerged one after another, and the market has once again been dominated by retail investors.  This shift from institutions to retail investors is increasing the possibility of a market crash.  The current high volatility in the market will continue until cryptocurrencies have potential real economic uses independent of prices.  Etherfang has huge potential  The Ethereum system supports smart contracts and provides developers with a way to create new applications. ...

C3.ai stock forecast 2025: Is it time to buy now?

  Few emerging technologies are as exciting as artificial intelligence. We have witnessed its ability to be applied in new ways, from quickly analyzing large amounts of data to improve the efficiency of hardware and software. C3.ai(AI) is one of the only companies in the world that develop artificial intelligence into independent services. In short, artificial intelligence is its entire business.  Investors avoided such stocks this year because large technology companies began to engage in artificial intelligence projects, raising concerns about increased competitive threats.  However, C3.ai continued to increase revenue, narrowed its losses, and added 82% of its customers in the fourth quarter of fiscal 2021. Therefore, the stock price has fallen about 60% so far this year, which may be a huge opportunity for those who want to get involved in this field.  A unique business case  Imagine that if a company needs to develop its own artificial intelligence, sim...