We don’t have much time left; Powell is about to “go on the offensive”!

This week’s rate cut may seem positive, but there are hidden risks. The rate cut is being forced by circumstances. After the rate cut at 3:00 a.m. on Thursday, Powell’s speech at 3:30 a.m. is likely to be extremely hawkish, laying the groundwork for not cutting rates next time. The market might be spooked.

Currently, rates have dropped to a neutral level of 3.5%, but inflation is as high as 3%, far exceeding the Fed’s 2% target, and the economy is still strong. The Fed has no reason to continue cutting rates. I expect the market to turn sharply downward after the cut and to correct for a while.

I plan to set up 2x long-term short positions when the price is high. For those seeking stability, you can wait to buy the dip after the crash next year. In the second half of next year, when the new chair takes office and aggressively cuts rates, the market will enter a 3-5 year major bull cycle. It’s always darkest before the dawn. Follow Musen to catch the trends together and wait to cheer for the real “bull run” when it arrives!