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Everyone pays attention to the news, so let me talk about my understanding of the interest rate cut news.
Many people now believe that interest rate cuts mean good news has landed, which is considered bad news. Personally, I think there is no need for conspiracy theories; it is completely good news. When looking at the news, one must focus on the essence and core. Why does the market rise when interest rates are cut? Because interest rate cuts bring liquidity, providing funds to the market. If prices rise in advance and then the interest rate cut is viewed as bad news, does the money brought in by the actual rate cut just disappear?
To understand this matter, let's take an example: you plan to purchase a large quantity of eggs in the market in the future. If people in the market know in advance that you intend to buy a large amount of eggs, they will raise the prices beforehand, causing the price of eggs to increase. When the time comes for you to buy the eggs, does the good news materialize after you have purchased the eggs, or does it materialize the day before you buy the eggs?
1. Even if the market thinks the favorable news will land the day before buying eggs and everyone sells off eggs, causing the price to drop, it doesn't matter because the moment you start buying eggs will truly affect the market, leading to the price being pulled back up.
So I think the people who believe the current market optimism has already materialized are purely illogical. You just need to ask them one core question: was the rally before the interest rate cut driven by funds after the interest rate cut?
Let me summarize.
Price fluctuations before the interest rate cut are driven by expectations, while the capital after the interest rate cut represents real purchasing power.
Taking the acquisition of eggs as an example, the real positive impact occurs when funds enter the market on the day of buying the eggs.
Even if there is a sell-off before landing, the influx of funds will still drive the price up.