Don't be confused by the cooing of doves; is interest rate reduction a rescue for the market or just a way to pour chicken soup into it?

The recent keyword in the market: "The sound of doves lingers, interest rate cuts are imminent." After Powell's speech, financial Twitter, The Wall Street Journal, and major influencers in the crypto space almost simultaneously got excited. But upon calm reflection, is this wave of interest rate cut expectations a miracle cure for the market or just another bowl of "central bank chicken soup"?

First, let's look at the bigger picture: the US economic growth has indeed cooled, and consumer confidence has taken a hit from the continuous interest rate hikes, leading to doubts about life. Naturally, the capital markets hope the central bank will intervene and ease things up a bit. Thus, every word like "perhaps," "might," and "cautious adjustment" is automatically translated by the market into "rate cuts coming soon, here comes your bonus."

But don't get the logic wrong: interest rate cuts are not the ultimate prize for the market, but rather a "forced choice" at the policy level. Once the Federal Reserve cuts interest rates, it signifies that they...
Acknowledging that the economic momentum is indeed insufficient and needs infusion to maintain. This is honey for the market in the short term, but bitter medicine in the long term.

Lowering interest rates again is like giving oxygen to a patient. The patient ( can immediately sit up and say, "I feel much better," but the doctor knows in their heart that this is just a temporary measure. If the economy has not truly recovered, it only extends the time spent in the hospital.
From an investment perspective, this environment is suitable for tactical optimism: you can take advantage of the dovish signals to position yourself in high-growth sectors and capture the market's short-term excitement. But don't fantasize that it can lead you directly to financial freedom. Long-term investors should be cautious; once interest rate cuts are confirmed, it may indicate that the fundamentals are weaker than you think.
Finally, the market is like a person in love; upon hearing "Maybe I like you a little," it has already planned for marriage, having children, and buying a house in a good school district. The problem is, Powell hasn't agreed to marry the market; he just sent a flirty text.

The expectation of interest rate cuts is beautiful, but don't get carried away. The dove's call is just the prelude; the real climax depends on economic data. What you need to do is not wait for promises, but learn to seize some profits in the ambiguity. )