Last week, the Federal Reserve cut interest rates by 50 basis points.

Slightly exceeding expectations, global capital markets are partying like it's a karaoke night, with the U.S. stock market hitting historical highs, and India's stock market breaking through 84,000 points last week, continuously setting new records; even the Hong Kong stock market has started a carnival mode, while only the A-shares are shivering in the ICU.

So, the weakness of A-shares is due to their own reasons, and the short-term trend has little to do with external factors.

The most direct reason is that financial consumers no longer want to be "chopped scallions," losing confidence in the future.

No one is willing to come to a market that is not even as good as a "gaming house," where 90% are losing money.

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How can it attract investors?

Look, the once paragon of value investment, Maotai, has now dropped to fifth place, with its stock price falling by 14% in September alone, forcing Kweichow Moutai to repurchase shares for the first time in 23 years since its listing, and to cancel them.

Look again, apart from the four major banks absolutely controlled by Central Huijin, three have entered the top four in market value, and another is China Mobile.

It's unexpected that China's future still relies on a bank that has already begun to show a downward inflection point.

The rise of the four major banks represents the actions of a certain team, and the consensus in the market is that the four major banks are soaring while individual stocks are plummeting.

Is this what saving the market and protecting the plate is about?

There is another category of stocks soaring, mainly concentrated in small-cap poor-performing stocks and metaphysics.

The rise of these stocks is represented by speculative capital and individual investors.

These stocks are generally not bought by retail investors because they are scared by the new delisting regulations and the nine national rules, while speculative capital acts as both the referee and the player, and they are not afraid.

Do you dare to enter such a market?

What financial consumers worry about most is how many "fraudulent companies" there are in the A-share market.

Under the policy of resolutely clearing out, how many of them will be delisted?

Once you buy a delisted company, that pitiful capital will vanish; and the delisting compensation mechanism is still reluctant to be implemented, who wouldn't worry about this.

The market is above 3,000 points, and a certain team keeps buying the four major banks, but now at 2,700 points, there is no capital to buy; above 3,000 points, favorable policies come one after another, but at 2,700 points, everyone is silent.

A large number of short-selling mechanisms have opened the door for short-selling institutions, while "chopped scallions" can only passively go long.

Financial consumers should think about it!

The A-share market is not good, and you are not allowed to invest in other better stock markets.

If you want to invest in the stock market, it can only be A-shares, and you are set to be eaten.

Those who have the ability to change do not want to change, and those who want to change are powerless!

The current A-shares have lost any investment logic, such as the exchange rate!

It should be that the appreciation of the RMB exchange rate and the depreciation of the US dollar lead to the bull market of A-shares.

This script has always been played like this, for example, in November 2005, the US dollar index fell from 92 to 71 in February 2008, and the Shanghai Composite Index rose from 998 points to 6124 points during the same period.

It can be said that every bull market of A-shares has been born from the US dollar breaking below 100 and continuing to fall.

So why is the US dollar index falling and the RMB appreciating for more than three months, but A-shares are still falling?

There are two reasons: 1.

This round of decline is mainly due to the internal reasons of A-shares, losing credibility and confidence; 2.

The US dollar interest rate is still high, currently around 4.75, while the domestic interest rate is around 2%, the interest rate difference is too large, and even the three-year deposit interest rate is only 1.8%.

Under this background, international capital is still not very likely to enter the Chinese capital market.

During the 2020-2022 pandemic, the Federal Reserve's interest rate was between 0-0.25%, and A-shares rose from 2440 points to 3731 points.

Therefore, if A-shares want to strengthen, they still need to see the subsequent strength of the Federal Reserve's interest rate cuts.

In general, when the US dollar index falls below 100 and continues to fall, and the Federal Reserve's interest rate continues to decrease, A-shares are expected to strengthen, and the core still depends on whether those who have the ability to change will change.

Investment has risks, and entering the market should be cautious!