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This week's market news is crucial: US election + Interest Rate resolution!
The US election will be announced on November 5th! This day is just the end of the vote, as for the result... it may take a few hours or even a few days.
But Proof of History, no matter who is elected after the election, the market usually rises. Why? Because when a new president takes office, everyone thinks, 'Maybe it will bring some stimulating policies!'
In the short term, we still need to be cautious about risks, four words: uncertainty!
1. Market uncertainty elimination: investors will readjust asset allocation.
2. Short-term Fluctuation caused by policy expectation adjustments.
3. Investor sentiment affects the Liquidity of risky assets such as stocks and Crypto Assets, leading to intensified Fluctuation.
4. The link between the dollar and the bond market: If the policy of the elected candidate leans towards easing, the market may anticipate a depreciation of the dollar and drive the US stock market to pump.
Let's talk about the Intrerest Rate decision of the Federal Reserve again. A 25 basis point rate cut in November is basically a foregone conclusion! Why not 50 basis points? We need to give the new president some room to maneuver. A 25 BP rate cut, a significant rate cut in 2025, and BTC breaking through 100,000 at the end of the year are all highly probable events.
Therefore, short-term fluctuations are inevitable. Everyone buckle up and wait for the market to open a new chapter!