Charles Schwab: The Federal Reserve is expected to cut interest rates two to three times in the second half of this year, and traditional investment products will not be replaced by virtual currencies for the time being

Charles Schwab Hong Kong financial advisor Lin Changjie said that the United States may be in a rolling recovery process, and the performance of U.S. stocks is still resilient. It is expected that the Federal Reserve will have the opportunity to start cutting interest rates in the second half of this year, two to three times, and continue to be optimistic about the financial, energy and materials U.S. stock sectors that benefit from the high interest rate environment. He believes that traditional investment products such as stocks and bonds will not be replaced by virtual currencies at this time. Lin Changjie believes that the manufacturing PMI in March returned to the high level in September 2022. Although the service industry data has slowed down, it is still in the expansion range. These data show that the United States may be in a rolling recovery process. At the same time, the recent performance of U.S. stocks has been resilient and returned to a reasonable level. Some inflation data have eased, so it is expected that the United States will cut interest rates as early as the second half of the year. Regarding the choice of U.S. stocks, Lin Changjie pointed out that due to the maintenance of the high interest rate environment, it is expected that the income of the three major categories of financial, energy and materials stocks will have stable growth, and these stocks may be expected to rise this year. Earlier, the price of Bitcoin continued to set new highs, and even surpassed silver to become the world's eighth largest asset. Lin Changjie pointed out that Bitcoin is a new investment product and is believed to attract a group of investors, but its supervision is not yet complete, the overall transaction transparency is not high, and investor protection is less. At this moment, it is believed that Bitcoin will not replace the status of traditional investment products such as stocks and bonds. He continued that the price of virtual currencies fluctuates greatly and the risks are high. Investors should make investment allocations based on their own risk tolerance; therefore, it is not recommended that ordinary investors use such assets as long-term deployments, but only as speculative tools. He also said that although the first batch of virtual asset spot ETF products in Hong Kong have been listed, the company currently does not provide customers with specific investment advice and investment deployment, but if customers need it, they can provide them with relevant news and information. (Sing Tao Headline)