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Recently, I noticed an interesting phenomenon—when the Federal Reserve cuts interest rates by 25 basis points, the US dollar should logically strengthen, but instead it depreciated. What exactly is happening behind the scenes?

On the surface, it looks like a narrowing interest rate differential, but fundamentally, capital is re-evaluating its choices. Once the Fed shifts to easing, the market immediately senses a "dovish" signal, and a large amount of hot money begins to withdraw from the dollar, flowing into emerging markets and risk assets. This is not just simple exchange rate fluctuation but a major global capital shift.

How much does this affect the lives of ordinary people? There are both benefits and drawbacks. The costs of studying abroad and traveling overseas have decreased, and overseas shopping has become cheaper. But on the other hand, export companies are struggling, which could directly impact employment and wage levels; the returns on dollar-denominated financial products have shrunk significantly, and those relying on "saving in dollars for interest" will need to reconsider.

Deposit interest rates continue to decline, and the era of "easy money" is truly over. At this point, some real skills are needed.

How to respond? I think there are several directions to consider:

First, don’t miss the exchange rate window. During this period of dollar depreciation, if you need to exchange currency, seize the opportunity and don’t wait for a rebound to regret it.

Second, diversify your assets. Allocate certain proportions to foreign exchange, A-shares, gold, and cryptocurrencies, but the key is to control your foreign exchange exposure and not put all your wealth into one basket. Seek stability while making progress—that’s the long-term approach.

Third, the LPR (Loan Prime Rate) is on a downward trend, leaving a window for rational homebuyers. But one thing to be clear about—buying a house is a necessity, so get in if you need to, but never blindly leverage to gamble on appreciation.

There are two pitfalls to avoid: don’t expect a "general rise" across all assets, as each asset class involves trade-offs; and don’t chase after market rallies—this is the easiest way to go bankrupt.

A rate cut is not a celebration; it’s a test. Those who can plan rationally will be able to stay steady amid market fluctuations.