Hold the coins in your hands, the market outlook may be more violent

The new President of the United States, Biden, took office, and his first fire after taking office was to send money to the whole people again. The scale of printing money this time has reached 1.9 trillion U.S. dollars, which will provide comprehensive financial support to both American companies and individuals. In layman's terms, it means throwing money everywhere.

About $1 trillion of these funds will be provided to American families. On average, each American can get about $2,000. And this money can probably support unemployed Americans for another 2 months or so.

According to the new president, this money is the government's hope to support the operation of the entire country until the new crown vaccine is fully available. And can the new crown vaccine be popularized in the United States in two months? I doubt it. In addition, the epidemic situation in the United States seems to have not yet reached the inflection point. Before the epidemic has reached the inflection point, it may be difficult for the U.S. economy to return to normal. The economy cannot return to normal, and ordinary people may have to continue to rely on government money to survive in two months.

On the other hand, at the government level, printing money to save the emergency is not only the idea of ​​the new president, but also the idea of ​​some key officials. For example, the new Treasury Secretary and former Federal Reserve Chairman Yellen said recently: In terms of finances, the government should make big moves. In layman's terms, it means spending money boldly.

Therefore, no matter from which angle you look at it, I am afraid that after 2 months, the U.S. government is likely to launch a new bill to continue to distribute money to the whole people.

You know, after the 2008 financial crisis, the Federal Reserve implemented a rescue plan and used four rounds of quantitative easing to print an extra $2 trillion. Last year, the Fed printed $7 trillion. At the beginning of this year, another 1.9 trillion US dollars came.

It's like taking a drug, once you're addicted, you can't stop. Therefore, according to the current unanimous attitude towards money printing in the United States, I am afraid that the money printed this year will exceed that of last year.

Where does the money come from? The Fed's money printing press.

So where will all the printed money go?

Generally speaking, there is such a rough rule: "The poor have money, and prices rise; the rich have money, and their assets rise." Therefore, a considerable part of the printed money must flow into various assets. This explains why stocks continued to soar last year when the U.S. stock bubble was already astonishingly large.

The stock market is almost the only bright spot in the current US economy. If there is any mishap in this bright spot (even if it is a relatively large correction), the US government will rescue the market at any cost, as it did last year.

And this year, according to the past practice, the bubble will probably continue to inflate, and it must continue to inflate, without any mistakes.

Speaking of digital currency, I am afraid this also explains why institutions entered the market on a large scale last year. On the one hand, it is estimated that there will be a group of capital with spare money in hand to enter the field of digital currency; on the other hand, I am afraid that some institutions will invest part of their funds in digital currency in order to diversify risks because they are worried about the excessive bubble in the stock market.

This year, such a trend will only become more pronounced and violent.

Looking at the flood of waves that is hitting us, I even raised my expectations for this round of bull market again. Combined with the current situation of Bitcoin's healthy adjustment, its momentum will only become more violent in the future.

Therefore, I once again suggest that you must hold on to the coins in your hands, especially value coins, and don’t throw them away easily for small profits at this stage, at least until June 2021 to see how the situation develops.