The Federal Reserve just cut interest rates, and US stocks soared towards 50,000 points like a rocket; in contrast, the crypto is still fluctuating within a range. Don't think this is the end; this is just the beginning of a "week of confusion." The real key point is—Japan's interest rate hike.
You can ignore the Japanese economy, but the yen's trajectory is absolutely crucial. The yen's trouble lies in the fact that it maintained negative interest rates for 20 years before suddenly turning positive last December—a truly "structural earthquake" in the global financial chain.
The essence of negative interest rates is simple: borrow 100 from Japan and repay 99; a positive interest rate means borrowing 100 and repaying even more. Do you think money is falling from the sky? Ordinary people don't get this treatment; those who can enjoy this kind of operation are big shots and institutions like Buffett and Soros.
Why did Buffett say "I love Japan"? Because he used to be able to borrow unlimited amounts of money from Japan at low interest rates, convert it into US dollars to speculate on US stocks, and then convert it back into yen to pay off his debts—that's free ammunition, and that's how global arbitrage institutions operate.
Here's the problem: Japan is about to raise interest rates. All the funds borrowed from Japan for global arbitrage—in stocks, gold, crude oil, bonds, foreign exchange, and even Bitcoin—must start withdrawing a portion to repay the debts, otherwise interest costs will skyrocket.
What does this mean? A unified global "capital repatriation" to Japan ; = a wave of passive selling of risky assets ; = a short-term decline and increased volatility .
Therefore, the coming week will be even more unpredictable. On one hand, the US is cutting interest rates, and on the other hand, Japan is raising interest rates—these two events together can only be explained in one way: something is wrong in the market, and a storm is brewing.
We'll discuss the specific, deeper impacts next year; it's too early to talk about them now. But you'd better buckle up beforehand to prepare for this shock.
The opportunity will be gone in the blink of an eye, everyone gather quickly!
Don't let hesitation delay the best opportunity to make money, and don't get burned by worthless cryptocurrencies. Follow Sister Miao and have a prosperous New Year!
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