2026-01-09 05:20:11

The Federal Reserve has sent a clear signal, aiming for a rate cut by 2026 with a target of 1.5 percentage points. This is not a minor adjustment. Looking at history, it's clear—over the past 30 years, there have been 6 easing cycles by the Fed, with 5 of them leading to gains in the S&P 500. Once rate cuts are implemented, approximately $2.3 trillion in liquidity could be released, enough to move the three major asset classes: stocks, bonds, and real estate. How powerful is liquidity? Rate-sensitive sectors like technology and real estate often lead the way, with an average historical increase of 35%. Especially around 2026, which coincides with the current cycle of inflation easing, the timing is quite precise. In other words, once rate cuts begin, capital flows may undergo significant adjustments, which also has implications for crypto market allocation strategies.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
5
Repost
Share

Comment

0/400

ForkLibertarian

· 2h ago

The expectation of interest rate cuts is back again. This set of rhetoric sounds so familiar... Out of five previous cycles, four saw gains, so what about the one that didn't? Don't just say nice things. 2.3 trillion sounds impressive, but how much can you actually get? I believe in the tech and real estate sectors rushing ahead, but can this round still rise by 35%? Bro, your appetite is a bit too big. The key point is still that phrase—"reference significance"... The inner circle has already priced in these signals thoroughly. What happens when it actually materializes?

View OriginalReply0

BridgeTrustFund

· 01-09 05:35

Is it coming again in 2026 with a rate cut? Is this time really different? Why do I feel like I've heard this too many times before? 2.3 trillion in liquidity sounds great, but where it actually flows still depends on the Fed's mood, right? Wait, can this logic be applied to the crypto world? I doubt it... A 35% increase? Are tech stocks about to take off again? The rate cut cycle is here. Is it time to rebalance your portfolio?

View OriginalReply0

MissingSats