[Contest] The Federal Reserve boldly starts with a 0.5% rate cut and keep this comprehensive guide to investment reduction!

This article, with 3000 words, is very suitable for liking, bookmarking, and sharing. It is suitable for readers who want to understand the interest rate meeting and discover investment opportunities; the main contents include the focus of the Federal Reserve interest rate meeting, the impact of interest rate cuts on global assets, investment opportunities shared by Mooers, and analysts' views.

鮑威爾認為，“我們重新調整政策立場將有助於保持經濟和增強勞動力市場，並將繼續推動通脹進一步下降，因為我們開始轉向更中性的立場。”

On the path of rate cuts, the main purpose is to guard against the risk of economic recession, so the existence of certain hedge assets is indeed important. However, since the economy may not necessarily experience a hard landing, there will also be investment value in industries or sectors that drive growth under weak economic performance, which are considered risky assets. Using a 'dumbbell strategy', the best asset allocation will be to buy 50% of hedge assets and allocate the other 50% to risky assets.

避險資產(保守型)
1. Japanese Yen
2. US long-term bonds
3. The price of gold

Risky assets (aggressive type) Recently, the market's view on AI investment has once again shifted. Personally, I believe that in asset allocation, investing in the field of AI is still advisable. As market sentiment improves, there are clear signs of improvement in the performance of the NASDAQ giants. The author is not blindly bullish on all the NASDAQ giants, but undoubtedly their corporate governance, profit capabilities, and growth prospects still lead in various sectors of the technology industry. Therefore, general investors can consider companies like these as preferred assets.

$Japanese Yen Trust (FXY.US)$$Vanguard Long-Term Bond ETF (BLV.US)$$iShares 20+ Year Treasury Bond ETF (TLT.US)$$Gold ETFs (LIST21038.US)$$SPDR Gold ETF (GLD.US)$

In a rate-cutting cycle, increasing deployment of long-term assets is indeed an effective strategy, especially in the expectation of further rate declines and a steady economy. By increasing allocation to long-term bonds, growth stocks, and other long-term income assets, investors have the opportunity to benefit from falling rates.
1. Bonds ETF
2. Growth Stocks ETF
3. High Yield Bond ETF
4. Gold ETF
5. China Southern CSI All Share Real Estate ETF

$Vanguard Long-Term Bond ETF (BLV.US)$$Vanguard Intermediate-Term Bond ETF (BIV.US)$$Vanguard Short-Term Bond ETF (BSV.US)$$GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$$Direxion Daily TSLA Bull 2X Shares (TSLL.US)$$Direxion Daily AAPL Bull 2X Shares (AAPU.US)$$Ishares Trust Global Reit Etf (REET.US)$

Amid expectations of interest rate cuts, long-term assets typically perform well, especially those in industries with high growth potential, such as cloud computing and biotechnology. Below are recommended lasting ETFs in the fields of cloud computing and biotechnology:
1. Recommended ETF in the cloud computing sector
1) Global X Cloud Computing ETF (CLOU)
2) WisdomTree Cloud Computing Fund (WCLD)
2. Recommended ETF in the biotechnology sector
1) iShares Nasdaq Biotechnology ETF (IBB)
2) ARK Genomic Revolution ETF (ARKG)

$Global X Cloud Computing Etf (CLOU.US)$$Wisdomtree Cloud Computing Fund (WCLD.US)$$iShares Biotechnology ETF (IBB.US)$$ARK Genomic Revolution ETF (ARKG.US)$

1. US bonds
This is because bond yields are inversely related to bond prices, meaning that as the Fed cuts interest rates in the future, bond yields fall, prices rise, and these high-yield bonds become sought after in the market. Current allocation to short-term US bonds is more promising from both interest and capital gain perspectives, which is why many experts and institutions have more confidence in short-term US bonds.

2. Gold
Most of the time, gold is considered an alternative asset to the US dollar. The price of gold and US bond yields are generally negatively correlated. When the Fed starts to cut interest rates, the price of gold often rises. As a tool to hedge against inflation, investors are more inclined to invest in gold during the Fed's rate-cutting cycle.

$Vanguard Long-Term Bond ETF (BLV.US)$$Vanguard Intermediate-Term Bond ETF (BIV.US)$$Vanguard Short-Term Bond ETF (BSV.US)$$Gold ETFs (LIST21038.US)$$SPDR Gold ETF (GLD.US)$

As of now, the Bank of Canada has cut interest rates 3 times, the Eurozone has cut rates twice, and the United States will begin its first rate cut in 4 years next week, with significant controversy over whether it will be 0.5% or 0.25%.
So here is the question, is there something that can make money almost 99% of the time, regardless of whether the United States is in recession? The answer is yes, with the code (TMF).
Reason: The Fed's rate cuts are already a major trend. If the US economy is healthy, the Fed will cut rates slowly and TMF will slowly rise. If the US experiences a recession, the Fed will cut rates rapidly and TMF will skyrocket. The difference between slow and rapid increase, in both scenarios, you can almost always profit. This is a double insurance trade.

$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$

During this interest rate reduction cycle, emerging market assets are expected to have the opportunity for recovery, with Hong Kong stocks leading the way.
There are three reasons for this:
1. Impact of interest rate reduction expectations.
2. Valuation recovery of Hong Kong stocks is still in progress.
3. The resilience of Hong Kong stocks' interim performance supports.

$Hang Seng Index (800000.HK)$$Hang Seng TECH Index (800700.HK)$$Hang Seng China Enterprises Index (800100.HK)$

To save time for mooer, conclusion first: I believe bonds, gold, and cryptos will perform better during the rate-cutting cycle!
Why have confidence in bonds?
First, it is necessary to understand the sources of returns in bond investments: coupon income + capital gains. Secondly, in the context of future Fed rate cuts, US bonds can benefit not only from locking in high coupon yields but also from the income brought by price appreciation.

Why have confidence in gold?
1) Rate-cutting factor
2) Demand factors
2) War factors

Why have confidence in cryptos?
1) Expectation of currency depreciation
2) Expectation of currency inflation
3) Exacerbation of speculative behavior

$Bonds (LIST20748.US)$$Vanguard Long-Term Bond ETF (BLV.US)$$Vanguard Intermediate-Term Bond ETF (BIV.US)$$Vanguard Short-Term Bond ETF (BSV.US)$$Gold (LIST2110.US)$$Gold ETFs (LIST21038.US)$$Crypto (LIST20010.US)$$Spot Crypto ETFs (LIST21030.US)$

Yesterday I made a decision that went against my ancestors, cleared out tqqq. Next week, there will be an interest rate cut. There are still quite a few market expectations for a 0.5% decrease, but it is estimated that this will still disappoint some people. This is one of the reasons for clearing out. Another reason is that the uncertainty of the election is too great. The two candidates are neck and neck in the polls, and the market fears uncertainty the most. Moreover, the market has generally performed poorly in previous elections. It is better to take a step back and intervene timely before the election~

$ProShares UltraPro QQQ ETF (TQQQ.US)$

"Now will be a showdown between market expectations and the Federal Reserve, with employment data determining which side is correct."

"I would not be surprised to see a stock market pullback in the coming weeks, but that's only because we've been performing so strongly up to this point."

"This is a bit surprising." A half percentage point rate cut "indicates a sudden shift in attention to the maximum employment requirement and a significant improvement in confidence in the progress of inflation over the past month and a half."

"The larger rate cut indicates Federal Reserve's support for the labor market."

"The rate cut in September and the possibility of another cut later this year should be good news for investors." He added, "The combination of a rate cut and moderate inflation should help alleviate financial pressures on low- and middle-income consumers."