Something big is going to happen tonight at 9:30!
Tonight's CPI is no small matter. It is like a heavy bomb that may set off a storm in the calm market at any time. CPI data has always been the focus of market attention. It is like a barometer of economic health. Every fluctuation affects the hearts of countless investors.
If it rises by 0.2%, the core CPI may rise to 0.3%! This is not a simple change in numbers. The meaning behind it is far-reaching and significant. Once the data exceeds expectations, the risk of inflation rebound will increase greatly. Inflation, the "ghost" in this economic field, once it begins to rage, will have a chain reaction on the entire economic system like a snowball.
You must know that after Trump's election, the subtle changes in the political situation will have an unignorable impact on the Federal Reserve. Powell will definitely not resign, which means that the Federal Reserve's policy will become tighter. The Federal Reserve's monetary policy is like a baton for the market. Tightening policy means a reduction in money supply, and funds in the market will become more scarce. For the market, this is like a sudden storm, and the market pressure is great enough to make many investors breathless.
In this case, the market will also encounter a violent impact! Whether it is the stock market, the bond market or the foreign exchange market, none of them can be immune. Stock prices may plummet like a kite with a broken string, bond yields will fluctuate violently, and foreign exchange rates will become elusive in the surging flow of international capital.
Be prepared, the market may come at any time! Investors are like soldiers on the battlefield, and they need to be on guard at this time. Check your portfolio, examine your risk exposure, and re-evaluate your asset allocation. For those leveraged traders, they must be more cautious, because the violent fluctuations in the market may make them lose all their money in an instant.
I am still bullish, and I will pull back briefly and then rise again.
If you have different opinions, please leave them in the comment area, chasing the rise and killing the fall.
