The economy is inevitably in a downward channel; otherwise, there is no need to initiate interest rate cuts. The logic of interest rate adjustments is clear: interest rate hikes correspond to a thriving real economy, while interest rate cuts indicate a weakening in the real economy. There has always been a divergence between finance and the real economy, and there is absolutely no possibility of cutting interest rates when the economy is doing well; otherwise, it would lead to serious inflation.



Regardless of the state of the real economy, the essence of capital seeking profit remains unchanged, which has also created the "bull and bear" differentiation in the market: when the economy is good, capital flows into the real sector for profits, while the financial market goes bearish due to blood loss; when the economy is declining, capital shifts to the financial sector, driving the market bullish.

Therefore, there is no need to overly worry that an economic recession will drag down the overall market trend.
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)