Epic A-Share Rally: How Long Will It Last?

I've had my fill, and the major A-share indices have taken turns hitting their upper limits, and the lost capital has all come back! Everyone is asking, is the bull market here? How long can it keep rising? To answer this question, we first need to understand how this wave of the market came about. Various internet influencers have come out to interpret it, and public accounts have started selling courses again. However, few people have hit the nail on the head. Some say it's because the central bank has loosened monetary policy, some say the cycle has been reversed, and others say it's because we launched intercontinental ballistic missiles. These are just superficial phenomena floating on the surface. The fundamental reason is that we have won the Sino-American financial war.

Two major events that have recently occurred all point to one conclusion: the Sino-American financial war that has lasted for more than two years has come to a temporary end with a crushing defeat for the United States.

The first event is the U.S. interest rate hike. The U.S. interest rate hike cycle started at the beginning of 2022 and lasted until this September. It was really unbearable, and they had to compromise and lower interest rates. Now they are not hiding it anymore, and they have lowered it by 50 basis points, which is double the amount predicted by Wall Street financial institutions, even showing a bit of a "let it break" attitude.

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This round of U.S. interest rate hikes can be called historic, with a total of 11 rounds, raising the U.S. dollar's base interest rate from 0% to 5.5%. On the surface, the U.S. interest rate hike was to cool down domestic inflation, but in reality, it was a financial war against China.

The U.S. interest rate hike and the Russia-Ukraine war almost happened at the same time. Do you really think it's a coincidence? The original plan of the United States was to dry up the global liquidity through interest rate hikes, causing the Chinese stock and foreign exchange markets to explode. U.S. banks were willing to offer high-interest rates of 5% to attract global capital, and hot money followed into the United States to earn interest while lying down.

The United States' abacus was ringing loudly, so why did they lower interest rates again? Because the opponent was too strong, and they were about to collapse. Unlike Vietnam, Thailand, and other countries, China has an independent foreign exchange control, which is equivalent to adding a protective layer to the entire financial market. On the other hand, if they don't lower interest rates, the 35 trillion U.S. debt bomb is about to explode, and the call for overseas interest rate cuts can't be covered up. After all, Canada, the United Kingdom, and the European Union have all cut interest rates. This is an unprecedented forced palace coup.

The second thing is the domestic supporting economic policy. As soon as the United States cut interest rates, we immediately issued policies, adjusted the stock mortgage, and banks provided liquidity to major shareholders in a targeted manner. Don't you find it strange? Policies have been issued before, but the intensity has never been so great. A-shares have also been indifferent. This time it's different. It seems to be well-prepared, as if it was prepared in advance, just waiting for the United States to cut interest rates and play this set of combination punches.

What will happen next? Overseas funds will flow into the country in large numbers. American economists say that there will be about 1 trillion U.S. dollars. These funds enter China, and the primary target is the most liquid stock market. Wall Street financial institutions have started to collectively turn more, and hedge fund bosses directly shouted the slogan: hurry up and buy all Chinese assets.

A month ago, I had repeatedly reminded everyone in the video that once the United States cuts interest rates, it is a historic moment, and Chinese assets will usher in a revaluation of value. At that time, many people scolded me for being wishful thinking, saying what kind of environment it is now, don't daydream. What about now? Have you been slapped in the face? The recent stock market surge is just a manifestation of asset revaluation.Initial funds have already entered the Chinese stock market, creating a bullish momentum. There are more funds eager to join, repeatedly observing at the market's threshold, undecided whether to enter or not. Their concern lies in whether the United States has any other cards to play, or if it might resort to desperate measures, even plotting war, as it did with Russia initially.

This worry is not groundless. Although the United States has lost, it may not be willing to admit defeat. If it refuses to concede, it could continue to raise interest rates. As for war, there are also signs to follow.

The United States spends nearly one trillion dollars annually to maintain its daily expenses at over 700 military bases around the world. The U.S. military is omnipresent globally, especially in the Asia-Pacific region, which has always been considered a must-contest area by the United States. Just look at the Philippines in recent years; it has almost become a puppet of the United States.

At this moment, the country has made another move. After forty-four years, China has once again test-fired an intercontinental ballistic missile into the Pacific Ocean. Pay attention to this timing; an event that occurs only once every forty years indicates its significant weight. What's more noteworthy is that both the United States and Russia have also tested such missiles this year, but neither was successful. We, on the other hand, not only succeeded but also gave the United States a heads-up in advance, even accurately predicting the launch distance of 12,000 kilometers.

This distance can reach Washington, D.C., straight from China. If you were the United States, how would you feel? Everyone is worried about World War III, but if the intercontinental missile succeeds, the concern should shift to a nuclear war. We already have nearly 300 nuclear warheads, in other words, China has the military strength to make the United States disappear from this world.

In 2003, the United States invaded Iraq, claiming that Iraq possessed weapons of mass destruction. Why did the United States dare to do this? Because it knew Iraq did not have such weapons. But now, we are clearly telling them that we have weapons of mass destruction and even the strength to threaten the survival of the United States. Under these circumstances, do you think the United States would dare to confront us directly?

Finally, to answer the question everyone cares about the most: how long will this market trend last? I believe the most dangerous time has already passed. After a general rise, there will inevitably be a divergence, followed by a structural market trend. A bull market cannot rise in one breath; it is more likely to rise in a spiral. When will it reach the top? That depends on what moves the United States has left.

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