This Is Why You Want Multiple Gold and Silver Stocks Wow! #China just went all in on #stimulus, sending Chinese stocks 4% higher. China's central bank:
- Lowered policy #interestrates and signaled more cuts are coming.
- Cut rates on over USD 5 trillion in #mortgages.
- Eased rules for second-home purchases.
- Lowered the required reserve ratio for banks, freeing up fresh #liquidity
- Pledged over USD 100 billion in equity market support.
- Stated policymakers were studying a stock market stabilization fund.
This set of measures is astonishing in itself, but the fact that China opted to announce them all at once is a significant deviation from previous years.
All this means China is (again) unlikely to stay within its budget #deficit target of 3% of GDP and unleashes a massive slew of liquidity that will be felt globally.
This is outright bullish for all risky, liquidity-sensitive asset classes like (quality) #stocks, #gold, and #Bitcoin. If effective, it will also provide upward pressure on #inflation, which has hovered just above zero for months.