Relevance of global economic situation and digital currency investment

Recently, the overall digital currency market has continued to hover in the trough; however, the stock market and precious metals market have been stimulated by external information to come out of the fierce market.

1. U.S. stocks rise as bullish comments from the Fed trigger gold sell-off

First, the chairman of the Federal Reserve recently expressed in a public speech in Switzerland that he is optimistic about the U.S. economy in the long term, that no recession will occur, the job market is in good shape, and inflation is gradually developing towards the established target.

This series of optimistic remarks was interpreted by investors in the precious metals market as the relief of risk aversion in the market, so gold and silver have plunged in recent days, with gold falling to nearly $1,500 and silver falling below $19.

In the U.S. stock market, the news pushed up U.S. stocks.

2. People's Bank of China's RRR cut detonates A-share market

The other is that the People's Bank of my country announced that it will lower the deposit reserve ratio of financial institutions by 0.5 percentage points on September 16, and further reduce some city commercial banks by 1 percentage point. According to estimates, the RRR cut will release 900 billion yuan of funds.

As soon as the news came out, it was immediately reflected in the A shares. Last Friday (September 6), a large number of A shares directly rose by the limit, and achieved the "five consecutive positives" of the Shanghai Composite Index.

Some experts interpreted this news as new measures that my country has continuously introduced to support the development of small and medium-sized enterprises, which will help my country's economy to further stabilize and improve.

3. The two pieces of news are optimistic on the surface but hidden risks

These two news seem to be a bit "the economic situation is relatively optimistic" and "the hidden risks are still controllable". But I remain cautious.

When I saw the Chairman of the Federal Reserve's point of view that "a recession cannot be seen", I immediately remembered the speech made by the then Chairman of the Federal Reserve Bernanke to Congress before the subprime mortgage crisis in the United States in 2008. The real estate market expressed its view that since the Great Depression in 1929, no serious bubble has been seen in the US real estate market.

As a result, the once-in-a-century subprime mortgage crisis swept the world soon.

Now, the U.S. stock market has continued to rise for ten years, surpassing any bull market in U.S. history, and most of the wealth of American families is in the stock market.No matter how good the economic data is, once there is a problem in the stock market, the US economy will be knocked back to its original shape.

The RRR cut by the People's Bank of my country seems to be to help small and medium-sized enterprises.therefore

thereforeThe overall situation of China and the United States, the locomotives of the world economy, is not optimistic, and the potential risks have not changed in the slightest. All the "relief" is only temporary and does not change the worsening situation at all.

4. Digital currency is a global market and is closely related to the global situation

In my articles, I often analyze the economic situation, potential risks and crises of major countries in the world, because once these factors break out, they will not affect individual countries or groups, but will affect the whole world.

The digital currency investment market is a borderless market, which is aimed at global investors. Therefore, once a global risk occurs, funds will definitely flock to digital currency.

Then when we look at this investment market, we must also look at other markets at the same time. When other markets such as the stock market are booming, but digital currency is at a trough, this is exactly the time for us to deploy digital currency.

Don't follow the market sentiment, chasing the stock market when the stock market is rising, and chasing the currency market when the currency market is rising, but do the opposite, deeply cultivate the currency market and deploy the currency market when the currency market is low.