A brief overview of the global market for the next 1-2 weeks, serving as a reminder.
On November 5, local time, the beautiful country will hold its presidential election, and on November 6, the Federal Reserve will announce its interest rate decision. These two major events are closely related.
Currently, Wall Street's trading pricing still favors the understood king, but based on the understood king's frequent interventions in the Federal Reserve's history, assuming the understood king is elected as expected, I believe that at least in the short term, the Federal Reserve will tend towards a hawkish stance.
The logic behind this is not complicated. No matter what the understood king's anti-establishment election rhetoric is before the election, it is always a mix of reality and illusion. However, according to the Republican tradition and the understood king's performance during his previous term, it can almost be concluded that during his term, there will be a demand for the Federal Reserve to significantly cut interest rates, and the US dollar will return to a weak cycle.
As the 'establishment' old money forces, the Federal Reserve's resistance to the understood king is almost an instinctive reflex. Moreover, the establishment old money forces have a motive to artificially create a global financial storm, firstly to allow financial capital groups to buy at low prices, and secondly to conveniently shift the blame onto the understood king.