SoSoValue: Today, the market risk sentiment VIX index climbed to its highest point since early August. The market may overreact. It is recommended to maintain risk exposure

SoSoValue's macroeconomics section shows that at the interest rate meeting on December 18, the Federal Reserve cut interest rates by 25 basis points as expected, lowering the target range of the federal funds rate to 4.25%-4.50%. For the pace of interest rate cuts next year, the Federal Reserve adjusted its expectations from the original "four interest rate cuts" to "two" through the latest dot plot. In addition, the Federal Reserve raised its expectations for future core PCE inflation and GDP growth, which is consistent with Powell's speech, all of which conveyed a more "hawkish" signal than market expectations. Data shows that today's market risk sentiment VIX index climbed to its highest point since early August (the Bank of Japan raised interest rates). SoSoValue analysts said that the FOMC proposed an unexpected rate cut plan, coupled with Powell's "hawkish" speech, which led to market sentiment turning to panic, and U.S. bonds even overreacted. The U.S. stock market subsequently pulled back, and the U.S. dollar appreciated strongly. In general, all risk assets responded strongly to the latest signals from the FOMC. Based on macro data, we believe that the fundamentals of the U.S. economy remain unchanged, the U.S. dollar remains strong, and assets with strong consensus, such as crypto assets, are still the destination of capital inflows. Every pullback brought about by the market's game sentiment is a good entry point. It is recommended to maintain risk exposure at present.