Brother Hong is here to talk to you.

The U.S. stock market has been on a bullish trend for more than ten years. This bullish trend occurred during the 2008 economic crisis. First, the market went bearish, but soon the stock market The bull market has risen rapidly and has lasted for more than ten years. Its biggest driving force is monetary easing. As the world's largest economy, the normal side of the United States' monetary easing has caused a surge in global asset allocation. Of course, the first to benefit is its capital market, so the biggest driving force for the bullish growth of U.S. stocks is the continued easing of its monetary policy.

Because we know that what capital markets such as the stock market need is money. Only with money can they be active and continue to rise. The biggest fundamental of the stock market Funds are actually funds, and only loose funds are the basis for a bull market. Without money, nothing will work.

In this way, the basis for the bull market in U.S. stocks benefits from loose money. Just last year, The U.S. economy has suffered a severe setback due to the epidemic. The current reality in the United States is that the epidemic is severe and the economy is in recession. However, its stock market is still going strong and is still in a bull market, which is still benefiting from the monetary easing of the U.S. stock market.

This wave of U.S. stocks suddenly collapsed due to the impact of the epidemic, but the stock market then rose rapidly and entered a bull market again. This important reason is still due to the Fed’s loose monetary growth, which cannot be said to be loose now. It should be unprecedented and unusually loose, so the U.S. stock market is going strong.

We have also seen recently that in the international futures market, non-ferrous metals as a whole have risen sharply recently and performed well. Copper prices have risen to the highest level in the past ten years, and nickel prices are also close to their highs since their listing. This is mainly due to the steady advancement of the US$1.9 trillion stimulus plan in the United States. Under the leadership of the United States, the relatively loose monetary policies of various countries have not yet changed significantly, so the capital market has been strong.

In this way, once the United States raises interest rates, that is When monetary policy tightens, countries will also tighten accordingly. This will have an impact on the capital market at least in the short term. Especially with its recent huge increase, the capital market will definitely undergo a round of adjustment, and funds will definitely adjust as well. , so once the policy changes, it will be necessary to reduce positions.

However, there are currently no signs and expectations of tightening in the US stock market. We can still enjoy the carnival brought to the market by monetary easing, which means that in terms of monetary policy There is no risk yet, just pay attention to the gaming risks in the short-term market.

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