The content of the two-day meeting of the Federal Reserve has been disclosed. In this open content, there is an important information that will affect the global economic and financial trends in the next two years at least and directly affect the vital interests of each of our investors.
The message is simple: the Fed will keep interest rates between 0% and 0.25% for at least 2022. This means that the US will maintain zero interest rate for the next two years. At the same time, the Federal Reserve is also aggressively buying various assets in the open market to ensure the liquidity of the market, that is to say, the Federal Reserve is still printing money into the market.
This is one of the few times the Fed has made the duration of zero interest rates so clear.
With the setting of the Federal Reserve and the heavy blow of this year's epidemic to the global economy, it is basically certain that in the next two years, the rates of developed countries (EU, Japan) and developing countries, including China, will only maintain the existing low or even lower rates, and at the same time, continue to print money to the market.
I'm afraid it's rare in history that the time line of flood is so clear. So what's going to happen around the world?
One of the most direct phenomena is that the polarization continues to be serious, and various secondary disasters caused by the polarization between the rich and the poor will emerge in endlessly.
We take the United States as an example. 40% of the people in New York, the largest city in the United States, are unemployed. The unemployed people in the United States are likely to climb to 47 million. What's the concept? Excluding the elderly and children who are unable to work, the unemployment rate among the working age group will reach 50%.
If the unemployment rate reaches such a high proportion, a little instability may cause social unrest and unrest. On the face of it, the national demonstration caused by the unfair treatment of black Americans is a concentrated outbreak of social and economic contradictions.
In my opinion, I'm afraid this kind of turbulence is only the beginning now, and there will be more similar problems in the future.
But at the same time, we find that the U.S. stock market has continued to rise, and the NASDAQ index has reached a new high.
While the economy is so sluggish, the stock market continues to boom. This shows that the massive money printed by the Fed has not entered the real economy, and has not improved the lives of ordinary people. Instead, it has rushed into the stock market on a large scale and caused asset bubbles.
This phenomenon will never happen only in the United States. Next, there will be a similar phenomenon in the world. On the one hand, the real economy is struggling, and the other side is the asset bubble continues to expand.
In response to this trend, there will be two levels of social stratification:
One is someone on the edge of poverty or at any time at risk of unemployment. Once such people lose their jobs, if they don't have new skills or have low skills, it will be difficult to find jobs in the future when the real economy continues to shrink, or even if they find jobs, their income will only be enough to survive. In the next two years, they will only have a harder time.
The other is the class with a lot of money left. They will have a lot of money at their disposal to invest. In the next two years, on the one hand, the downturn of the real economy will be difficult to attract funds, on the other hand, governments will release massive funds. All this money will once again go into all assets: stocks, precious metals, digital currencies and even art of all kinds. All assets will once again reproduce the huge bubble that occurred after the 2008 financial tsunami, and those who have spare investment will enjoy the feast of asset bubbles in the next two years.
For each of our investors, in the face of the development trend in the next two years, we need to carefully position and plan ourselves. Are we in the first class that may be struggling to survive at any time, or do we have a lot of spare money to invest while maintaining cash flow?
What we need to do is to maintain our basic life for the next two years, and then spend all the spare money on all the investment fields we are familiar with: stocks, digital currencies All fields we are familiar with and understand can be laid out. In the past two years, we will again see a group of people jumping up the ranks and enjoying the huge profits brought by asset bubbles.
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