Inflation overshoots the moderate inflation target by 1%, and short-term interest rates need to be raised by 1.5% to control. At present, the core inflation rate is at least four or five percentage points higher, and the benchmark interest rate can only be increased by 600-800 basis points. 50 basis points at a time is negligible, and 10 times of interest rate increase is not enough. The stock market running in a parallel universe may fall back to the earth.
The trend of U.S. stocks has made it difficult for investors who have enjoyed rising dividends for more than ten years to react, but they might as well guess boldly: Maybe U.S. stocks have entered a bear market cycle, and it is not impossible to fall back to ten or even twenty years ago
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