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.

Will China's economy recover as the epidemic is under control?

During the Chinese Spring Festival, novel coronavirus broke out in Wuhan, and the Chinese stock market was hit hard. Subsequently, the Chinese government quickly took strict measures to block Wuhan, a city with a population of tens of thousands of people, to prevent the further spread of the epidemic, and to take corresponding epidemic prevention measures in other cities. When the worst of the epidemic had already occurred, the Chinese stock market quickly rebounded. As the number of infections continues to decline, China's Shanghai Composite Index is expected to rise further. Sars Period Looking back on similar events in the past, the SARS epidemic in 2003, the stock market also made a short-term decline, and then the SARS epidemic was brought under control, the stock market immediately went up for a long time. According to past historical data, the impact of the novel coronavirus epidemic on the stock market may be short-lived. China Fund Capital Flow Howeve...

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