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With central banks around the world cutting interest rates and injecting stimulus, how can you position your portfolio to benefit from the resulting increase in liquidity? Read on. Macroeconomic triggers deepen Global liquidity is seeing a sharp increase as central banks around the world, particularly in China and the U.S., adopt policies aimed at pumping money into their economies.  China recently announced a $143 billion stimulus package, which is driving strong economic momentum. On top of that, the People’s Bank of China has mandated commercial banks to lower mortgage rates on existing home loans by at least 30 basis points below the loan prime rate by Oct. 31, all to support its struggling property market.  As a result, Chinese stocks have gone parabolic. In just the past five days, the Shanghai Composite Index surged by 20%, with an 8% jump recorded on a day alone on Sep. 30.  JUST IN: 🇨🇳 China’s stock market has gone PARABOLIC this week. +20% in 5 days+8% today – Government injecting $140B stimulus– Multiple rate cuts. The last 5 days have been INSANE! pic.twitter.com/de4Qpai4lm — Radar🚨 (@RadarHits) September 30, 2024 But it’s not just China. On Sep. 18, the U.S. Federal Reserve implemented an aggressive 50-basis-point rate cut, and according to the CME FedWatch Tool, the market now anticipates another 25 to 50 bps cut in November. If this occurs, the federal funds rate could drop to a range of 4.25-4.50% or 4.50-4.75%.  Moreover, since the Federal Open Market Committee meeting on Sep. 18, crypto assets have outperformed many traditional assets. The increasing liquidity, both in the U.S. and China, could likely boost investors’ appetite for riskier investments like crypto in the near future. Let’s dive deeper into each of these events and explore how they could shape the future of the crypto market,…

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Filed under: News - @ October 2, 2024 6:26 pm