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The Fed’s first rate cut: What it means for equities, risk, and crypto

The Fed’s first rate cut: What it means for equities, risk, and crypto

The Federal Reserve has officially initiated its rate cut cycle, a move long anticipated by markets that have already priced in approximately 3.8 cuts over the next 12 months. I forecast two additional reductions on October 29 and December 12.

Historically, the period immediately following the first rate cut has been marked by heightened volatility as markets recalibrate their expectations, reassess risk premiums, and digest the implications of a new monetary regime.

This transitional phase is particularly delicate because it often coincides with divergent signals from economic data, political uncertainty, and evolving investor positioning. All of these factors are present in today’s environment.

Equities and the magnificent seven effect

Equity markets, led by the S&P 500’s impressive 32 per cent rally from its recent lows, reflect a strong recovery narrative driven disproportionately by the so-called Magnificent Seven (Mag7) stocks. These technology and growth-oriented giants continue to post earnings growth roughly four times that of the remaining 493 companies in the index, underscoring their outsized influence on overall market performance.

However, this concentration introduces significant risk. Mag7 valuations now exceed 30 times forward earnings, not yet at their historical peaks but certainly in elevated territory. While historical backtesting suggests that equities generally perform well in the 12 to 24 months following the start of a Fed easing cycle, the current context differs in important ways.

The market’s narrow leadership, combined with stretched valuations, makes indiscriminate exposure to these names increasingly perilous. Chasing performance at this juncture could expose investors to sharp corrections if earnings disappoint or if macro risks materialise. Diversification, not just across sectors but across geographies and asset classes, emerges as a critical defensive and offensive strategy.

Investor positioning and market signals

Investor positioning data reveals that asset managers hold high equity allocations, though not at extreme levels that typically precede major drawdowns. Meanwhile, equity volatility remains subdued, a condition that historically correlates with lower forward returns over the subsequent six to twelve months.

This low-volatility complacency can lull investors into underestimating tail risks, especially when other asset classes also appear expensive. Gold, for instance, has seen renewed inflows into bullion-backed ETFs and now trades near US$3,760 per ounce, supported by geopolitical tensions and a modestly weaker US dollar, which closed at 98.152.

Yet gold positioning is once again crowded, suggesting limited room for further upside without a significant catalyst such as a sharp escalation in global instability or a deeper-than-expected economic slowdown. Similarly, credit markets show tight bond spreads, indicating that investors are not demanding much compensation for credit risk. In such an environment, security selection becomes paramount.

Broad exposure to high-yield or investment-grade debt may not suffice. Instead, bottom-up analysis of issuer fundamentals is essential.

Mixed economic signals and political risks

The macroeconomic backdrop offers mixed signals. August’s Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, rose 0.3 per cent month-over-month, resulting in a 2.7 per cent annual headline rate. Core PCE, which excludes food and energy, stood at 2.9 per cent year-over-year after a 0.2 per cent monthly increase.

This remains above the Fed’s two per cent target but shows signs of gradual moderation. The data came in largely in line with expectations and did not provoke a strong market reaction, suggesting that investors have already internalised a path of gradual disinflation. However, political risks loom large.

The September 30 deadline for US government funding is fast approaching, and with congressional negotiations stalled, the probability of a partial shutdown is rising. While past shutdowns have had limited economic impact, they inject uncertainty into market psychology and could delay fiscal policy decisions or data releases, further complicating the Fed’s communication strategy.

Wall Street’s reaction and treasury yields

Market reactions to recent events have been muted but telling. Wall Street closed higher last Friday, ending a three-day losing streak, with the Dow Jones up 0.7 per cent, the S&P 500 gaining 0.6 per cent, and the Nasdaq rising 0.4 per cent.

Notably, markets barely flinched at the announcement of new sector-specific tariffs by the Trump administration, signalling either desensitisation to trade rhetoric or confidence that such measures will not significantly disrupt the broader economic trajectory. Treasury yields reflected this calm.

The 10-year yield edged up just one basis point to 4.183 per cent, while the two-year yield dipped two basis points to 3.645 per cent, flattening the yield curve slightly. This dynamic suggests that while near-term rate expectations are stable, longer-term growth and inflation concerns persist.

Asia’s cautious mood and key data ahead

In Asia, equities dipped on Friday as resilient US data prompted a modest reassessment of rate cut expectations. US equity index futures point to a higher open, indicating that global investors remain cautiously optimistic. The coming week will be pivotal, with the September nonfarm payrolls report on October 3 serving as a key barometer of labor market health.

Additional insights will come from the JOLTS job openings data on Tuesday and the ADP private payroll report on Wednesday. Labour market strength remains the Fed’s primary concern. If employment data remains robust, it could delay further rate cuts or reduce their magnitude, directly impacting risk asset valuations.

Bitcoin’s technical recovery

Meanwhile, Bitcoin has staged a “reasonable” technical recovery, rising 2.24 per cent in the past 24 hours to US$111,966 after a 7-day decline of 2.23 per cent. This rebound appears driven by three converging factors. First, price action held firm at the US$108,680 support level, breaking a bearish trend line and reclaiming the US$111,000 mark.

Hourly indicators, including a bullish MACD crossover and an RSI stabilising around 47-48, suggest that short-term momentum has shifted in favour of buyers. The 200-day exponential moving average at US$106,200 continues to act as a structural support, reinforcing the asset’s resilience.

However, the critical test lies ahead. A sustained close above US$112,500, the 50 per cent Fibonacci retracement of the recent decline, could pave the way for US$113,700 to US$115,000. Failure to break this resistance may invite profit-taking and a retest of the lower support level.

On-chain metrics and corporate adoption

Second, on-chain metrics show improving demand dynamics. The 60-day Buy/Sell Pressure Delta has entered what analysts describe as an opportunity zone, indicating reduced selling pressure.

The decline in sending addresses and stable miner reserves, holding steady at 1.8 million BTC, suggests that long-term holders are not capitulating. That said, the 90-day delta remains cautious, reflecting lingering uncertainty among larger participants. The Coinbase Premium Index, currently at +0.041, will be a key gauge of sustained US institutional interest.

Third, corporate adoption continues to provide narrative support. The rebranding of 164-year-old Japanese textile firm Marusho Hotta to Bitcoin Japan and its announcement of a BTC treasury business, while small in absolute scale, aligns with a growing trend among Asian corporations seeking alternative stores of value amid declining traditional revenues.

Firms like Metaplanet and Kitabo have similarly adopted Bitcoin, reinforcing its digital gold thesis in a region that is increasingly skeptical of fiat stability.

Final thoughts: Selectivity over momentum

In sum, the current market environment demands a nuanced approach. While the Fed’s pivot to easing should, in theory, support risk assets over the medium term, the combination of expensive valuations, narrow market leadership, and external risks ranging from a potential government shutdown to geopolitical flare-ups calls for disciplined selectivity.

Investors should avoid chasing momentum in already crowded trades and instead focus on quality earnings, global diversification, and tactical entry points during pullbacks.

 

Source: https://e27.co/the-feds-first-rate-cut-what-it-means-for-equities-risk-and-crypto-20250929/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

The Fed, tariffs, and digital assets: What investors are watching

The Fed, tariffs, and digital assets: What investors are watching

Investors appear to shrug off the ongoing global uncertainties, focusing instead on positive economic signals and the prospect of monetary policy easing from central banks. This resilience comes at a time when the world economy navigates a complex landscape of inflationary pressures, supply chain disruptions, and shifting alliances.

Markets have demonstrated an ability to adapt, with equity indices pushing higher and volatility remaining contained. Yet, beneath this calm surface lies a web of risks that could unsettle the balance if not managed carefully. The ongoing conflicts in regions like Ukraine and the Middle East add layers of unpredictability, influencing everything from energy prices to investor confidence.

Despite these challenges, the broader appetite for risk assets suggests that participants believe in the underlying strength of global growth, particularly in developed economies.

The latest data from the US Bureau of Labour Statistics has painted a clearer picture of the labour market’s trajectory, revealing a significant downward revision in payroll numbers. Officials adjusted the figures by 911,000 jobs for the 12-month period ending in March, exceeding estimates of a 700,000 reduction.

This equates to roughly 76,000 fewer jobs per month than previously reported, signalling a softer employment landscape than many had anticipated. Such revisions often stem from more comprehensive data sources, like tax records, which provide a fuller view of hiring trends. This adjustment has reinforced expectations that the Federal Reserve will act decisively to support the economy, with a rate cut appearing imminent at the next meeting.

Lower interest rates typically stimulate borrowing and investment, helping to sustain growth amid signs of cooling. However, this data also highlights vulnerabilities, as slower job creation could translate into reduced consumer spending if not offset by wage gains or other supports.

Analysts have noted that while the revision implies average monthly gains of about 71,000 jobs, the overall labor market remains robust by historical standards, avoiding the sharp contractions seen in past downturns.

Tariff escalation and trade tensions

President Trump’s escalation of tariff threats has introduced fresh volatility into international trade relations, targeting key players like India and China while proposing up to 100 per cent duties on Russia to pressure it into de-escalating tensions with Ukraine.

This move, contingent on similar actions from the European Union, aims to use economic leverage to influence geopolitical outcomes. Tariffs of this magnitude could disrupt global supply chains, raising costs for importers and potentially slowing economic activity in affected sectors.

For instance, India’s role as a major processor of Russian oil has drawn scrutiny, with US imports of these products highlighting the interconnected nature of energy markets. Critics argue that such policies risk retaliatory measures, echoing the trade wars of previous years that hampered growth. Russia has responded by downplaying the threats, suggesting efforts to strengthen ties with alternatives like China and India.

This tariff strategy reflects a broader shift toward protectionism, which could undermine multilateral efforts to resolve conflicts. While intended to bolster US negotiating power, the approach may strain alliances and complicate recovery in a post-pandemic world still grappling with inflation and debt.

Equity market rally on Fed hopes

US equities have surged to new record highs, buoyed by the payroll revision that has heightened anticipation of Federal Reserve intervention to prop up the economy. The S&P 500 advanced 0.3 per cent, the Nasdaq gained 0.4 per cent, and the Dow Jones rose 0.4 per cent, reflecting broad-based optimism across sectors.

Technology stocks led the charge, as investors bet that lower borrowing costs would benefit growth-oriented companies. This rally occurs against a backdrop of solid corporate earnings and improving consumer sentiment, though some caution that valuations are stretched. The market’s reaction underscores a belief in a soft landing, where the Fed engineers a slowdown without tipping into recession.

Historical precedents show that rate cuts often ignite equity booms, but they also carry risks if underlying economic weaknesses persist. With futures indicating mixed openings, traders are closely monitoring upcoming data releases for confirmation of this trajectory.

Bond yields and dollar movements

Bond yields have rebounded after a brief dip, with the 2-year Treasury yield climbing 7.2 basis points to 3.558 per cent and the 10-year yield up 4.8 basis points to 4.088 per cent. This movement suggests that investors are adjusting to the likelihood of a rate cut while pricing in persistent concerns about inflation. Higher yields typically signal expectations of stronger growth or stickier prices; however, in this context, they may reflect a normalisation following recent declines.

The dynamics of the yield curve play a crucial role in banking profitability and lending activity, influencing everything from mortgages to corporate debt. As the Fed prepares to ease, these shifts could ease financial conditions, encouraging investment. However, if yields rise too sharply, they might tighten conditions prematurely, countering the central bank’s intentions.

The US Dollar Index strengthened 0.3 per cent to 97.79, benefiting from safe-haven flows amid global uncertainties. This appreciation pressures emerging markets, making dollar-denominated debt more expensive to service. Gold, conversely, retreated 0.3 per cent to US$3,674 per ounce, as the stronger dollar and rising yields diminished its appeal as a non-yielding asset.

Brent crude oil edged up 0.6 per cent, driven by escalating tensions between Israel and Qatar, which raise fears of disruptions in key supply routes like the Strait of Hormuz. Oil’s sensitivity to geopolitical events underscores its role as a barometer for global stability, with prices fluctuating based on perceived risks to production and transit.

Asian equity indices opened mostly higher today, extending the positive momentum from Wall Street. This uptick reflects regional resilience, though concerns over trade tariffs linger. US equity futures point to a mixed start, suggesting caution as investors digest the latest developments.

Metaplanet expands Bitcoin strategy

Turning to the cryptocurrency space, Japan-based Metaplanet has announced plans to issue 385 million new shares, aiming to raise approximately US$1.4 billion to fuel its Bitcoin acquisition strategy. The company priced the shares at ¥553 each, upsizing from an initial 180 million shares, with proceeds primarily allocated to purchasing Bitcoin and enhancing its income-generation operations.

As of September 1, Metaplanet holds over 20,000 Bitcoins, accumulated since early 2024, and has generated significant revenue from Bitcoin options trading, reporting ¥1,904 million in the second quarter of 2025. This move positions Metaplanet as Asia’s equivalent to MicroStrategy, emphasising Bitcoin as a core treasury asset.

The firm’s strategy includes using earnings to pay dividends on preferred shares, blending yield generation with cryptocurrency holding. Institutional interest, such as a US$30 million investment from KindlyMD’s subsidiary Nakamoto, underscores growing confidence in this approach.

Metaplanet’s actions highlight a broader trend where corporations integrate digital assets into balance sheets, seeking inflation hedges and growth potential.

Bitcoin and Ethereum stance

Bitcoin’s price path depends on a dynamic interplay between institutional adoption and regulatory advancements. Spot Bitcoin ETFs have seen inflows of US$14.8 billion year-to-date, providing a buffer against selling pressures and indicating sustained demand from traditional finance. Legislative efforts to establish a US Bitcoin reserve, holding around 198,000 BTC, could solidify its status as a strategic asset, anchoring long-term value.

Technical upgrades like BIP-119, which introduces covenants for enhanced scalability and security, are under debate and may reach consensus by year’s end, potentially reshaping Bitcoin’s utility. These factors collectively suggest Bitcoin is maturing beyond speculative trading, evolving into a foundational element of global finance.

Ethereum has encountered resistance in its recent price movements, declining below US$4,450 and consolidating around key levels. The asset struggles to breach US$4,400, trading below this mark and the 100-hourly simple moving average. A bearish trend line forms resistance at US$4,340 on the hourly chart, with immediate hurdles at US$4,350 and US$4,380. If Ethereum clears these, it could initiate a recovery wave, targeting higher zones.

However, failure to do so might lead to further tests of support near US$4,260. Analysts predict Ethereum could fluctuate between US$4,000 and US$5,000 in September 2025, driven by network upgrades and institutional interest. The cryptocurrency’s performance ties closely to broader market sentiment, with potential for upside if rate cuts materialise and DeFi adoption accelerates.

Outlook and risks ahead

In my view, the current market environment demonstrates a remarkable capacity for adaptation in the face of adversity. Equities reaching records despite downward data revisions and tariff escalations point to a collective bet on central bank support and economic resilience. The Fed’s likely intervention could extend this bull run, but overreliance on monetary easing risks inflating asset bubbles.

Geopolitically, Trump’s tariff tactics, while bold, may backfire by fragmenting trade and inviting retaliation, reminiscent of past protectionist pitfalls that deepened downturns. On the crypto front, initiatives like Metaplanet’s aggressive Bitcoin stacking and potential US reserves signal a paradigm shift, where digital assets transition from fringe to mainstream. Ethereum’s technical challenges notwithstanding, the sector’s institutional inflows and innovations bode well for long-term growth.

Overall, while short-term volatility looms, particularly with September’s historical weakness, the foundational trends favor cautious optimism. Investors who navigate these waters with diversified strategies stand to benefit, as the interplay of policy, technology, and sentiment continues to shape outcomes in unpredictable ways. This moment underscores the importance of vigilance, as today’s robustness could swiftly give way to tomorrow’s corrections if key supports falter.

 

 

Source: https://e27.co/the-fed-tariffs-and-digital-assets-what-investors-are-watching-20250910/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Powell’s pivot: How Jackson Hole reshaped markets and what comes nex

Powell’s pivot: How Jackson Hole reshaped markets and what comes nex

The financial landscape presents a compelling narrative of shifting tides and strategic recalibration as we navigate the final stretch of August. Recent developments emerging from Jackson Hole have fundamentally reshaped market expectations, creating a domino effect across asset classes that demands careful dissection.

Federal Reserve Chair Jerome Powell’s carefully calibrated remarks last Friday did far more than hint at potential policy shifts; they effectively slammed the door on prolonged restrictive monetary policy while opening a wide window for immediate easing.

This pivot represents a significant departure from the Fed’s previous stance and carries profound implications for investors globally. Market participants responded with characteristic speed, pushing major US indices to fresh record highs as the S&P 500 gained 1.52 per cent and the tech-heavy Nasdaq surged 1.88 per cent.

The Dow Jones Industrial Average joined this upward trajectory, climbing 1.89 per cent to touch uncharted territory, a development underscored by the US government’s strategic investment in a major semiconductor manufacturer, which provided additional tailwinds for industrial and technology sectors.

Inflation cools, optimism rises

This renewed optimism stems directly from Powell’s acknowledgement that inflation has sufficiently cooled to warrant policy adjustment. His speech deliberately avoided the cautious hedging that characterised previous communications, instead emphasising the Fed’s readiness to act decisively should inflation continue its descent toward the two per cent target.

The immediate market reaction proved remarkably consistent across fixed income and currency markets. Treasury yields tumbled across the curve with the benchmark 10-year note falling 7.4 basis points to 4.254 per cent, while the two-year note dropped 9.5 basis points to 3.696 per cent. This yield compression reflects investor conviction that the current restrictive policy stance is temporary.

Concurrently, the US Dollar Index retreated 0.92 per cent as capital flowed toward risk assets while gold prices rebounded one per cent on the dual catalysts of dollar weakness and heightened rate cut anticipation. These movements collectively signal a powerful shift in market psychology where the so-called Fed put, the implicit promise of central bank support during market stress, has been reactivated with unusual clarity.

Earnings season exposes a split reality

The earnings season provides a critical counterpoint to this macro optimism, revealing a more nuanced corporate reality beneath the surface. While the much-discussed Magnificent Seven technology giants delivered robust results exceeding lowered expectations, the broader market tells a different story. Analysis of S&P 500 earnings revisions shows a troubling pattern of downward adjustments for the remaining 493 companies.

This bifurcation creates a dangerous illusion where headline index performance masks underlying weakness in the economic mainstream. Investors now turn their attention to the final wave of quarterly reports from key technology players, including Nvidia, CrowdStrike, Snowflake, and Autodesk, alongside consumer stalwarts Lululemon and Dollar General.

These results will serve as crucial stress tests for both the technology sector’s growth trajectory and consumer resilience amid persistent inflationary pressures. The market eagerly awaits these reports not merely for individual company performance but for what they reveal about broader economic health and corporate pricing power.

Asia’s liquidity pressures and regional sentiment

Asian markets present their own complex dynamics, particularly Hong Kong’s interbank rate market, which has exhibited unusual volatility. The one-month Hong Kong Interbank Offered Rate Hibor has surged dramatically from 1.0 per cent on August 11 to 2.77 per cent as of August 22.

This sharp increase reflects significant tightening in short-term liquidity conditions, likely driven by seasonal funding demands and potential regulatory adjustments. Such movements warrant close monitoring as they can transmit stress through global financial channels.

Despite these regional headwinds, Asian equity markets opened higher during early trading sessions today, suggesting regional investors remain influenced by the broader risk-on sentiment emanating from Powell’s comments. Yet US equity index futures currently indicate a potential pullback at today’s open, introducing an element of caution that underscores the market’s fragile equilibrium.

Crypto’s reaction: from Bitcoin to Ethereum

The cryptocurrency sector experienced particularly dramatic fluctuations following Powell’s speech, creating a fascinating case study in market psychology and whale behaviour. Bitcoin initially surged above US$67 000 following the dovish Fed commentary as traders anticipated lower interest rates would boost risk asset valuations.

However, this rally proved short-lived with the digital asset subsequently declining approximately two per cent. Blockchain analytics firms identified significant movement by large holders shifting substantial Bitcoin positions into Ethereum, a trend that accelerated over the weekend.

Lookonchain data revealed one prominent wallet recently converted part of its 100,784 Bitcoin holdings to acquire 62,914 Ethereum tokens while simultaneously establishing a large derivatives position. This strategic rotation by major players suggests a fundamental reassessment of digital asset allocation priorities, where Ethereum increasingly appears as the preferred vehicle for institutional exposure to the crypto ecosystem.

Ethereum’s technical indicators present both opportunity and warning signs that demand careful interpretation. The cryptocurrency’s 30 day Market Value to Realised Value MVRV ratio has reached 15 per cent a threshold historically associated with profit taking and potential corrections.

Analytics firm Santiment explicitly warns that this constitutes a danger zone that could trigger selling pressure if Ethereum fails to break US$5,000 in the near term. Yet this short-term caution contrasts with the more favourable long-term MVRV ratio of 58.5 per cent, indicating substantial unrealised gains for patient holders.

Additional bullish signals include the declining supply of Ethereum held on exchanges, which suggests growing investor confidence and reduced immediate selling pressure. Combined with rising staking participation and expanding decentralised finance DeFi activity, these fundamentals position Ethereum as the structural cornerstone of the crypto economy rather than merely a speculative alternative.

Strategic imperatives for investors

For investors navigating this complex environment, several strategic imperatives emerge clearly.

First, the renewed viability of the Fed puts creates a tactical opportunity to accumulate quality assets during periods of volatility. Well-capitalised investors should view market pullbacks as entry points for fundamentally strong companies, particularly those demonstrating pricing power and resilient cash flows.

Second, the rotation from Bitcoin to Ethereum observed among major holders warrants serious consideration as it reflects a maturation of institutional crypto strategies. Dollar cost averaging into Ethereum provides a prudent approach to managing volatility while maintaining exposure to the asset’s long-term potential.

Third, investors should actively hedge existing cryptocurrency positions using options or futures contracts to protect against potential corrections, especially given the current MVRV warning signals.

Fourth, attention must remain fixed on Ethereum’s technological roadmap, where continued protocol upgrades like further implementation of EIP 4844 will drive sustainable value creation beyond mere speculation.

The road ahead: Volatility and value

The coming weeks will test the durability of this optimistic market posture as investors confront key data points, including the August CPI inflation report, consumer sentiment figures, and potential developments on trade policy. Historical precedent suggests September often brings increased market volatility; the current environment differs significantly from past cycles due to the Fed’s explicit commitment to policy normalisation.

While technical indicators show investor positioning has become somewhat extended, introducing near-term correction risks, the fundamental backdrop of potential rate cuts, combined with resilient corporate earnings, supports continued market advancement. The critical distinction this time involves the quality of the underlying assets driving the market.

Unlike previous cycles, where broad-based speculation fuelled gains, the current environment rewards careful stock selection focused on companies with demonstrable earnings power and sustainable competitive advantages.

This nuanced market landscape demands intellectual rigour and disciplined analysis from investors. The days of indiscriminate buying are over, replaced by an era requiring a granular understanding of both macroeconomic currents and individual company fundamentals.

Powell’s Jackson Hole speech has reset market expectations in profound ways, creating both opportunity and risk that will define investment outcomes for the remainder of 2024. Investors who combine patience with strategic precision while avoiding emotional reactions to short-term volatility will best position themselves to navigate the complex months ahead.

The market’s message is unambiguous: lower rates are coming, but their arrival does not guarantee universal gains. Success will belong to those who recognise that the Fed’s policy shift merely creates favourable conditions; the real work of identifying enduring value remains squarely the investor’s responsibility.

As we move toward September’s pivotal Federal Reserve meeting, the financial world watches with bated breath, knowing that the decisions made in the coming weeks will reverberate through markets for years to come.

 

Source: https://e27.co/powells-pivot-how-jackson-hole-reshaped-markets-and-what-comes-next-20250825/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j