When inflation is no longer rampant, assets start to daydream

As core CPI begins to decline, financial markets immediately start dreaming: rate cuts, liquidity injections, asset soaring—the scripts are almost written. But reality is often more subdued than jokes.
A cooling inflation indeed opens up room for easing policies, but the question is—why is inflation falling? If it's due to supply improvements, that's a good thing; if demand weakens, it's like a restaurant offering discounts but no one shows up—the atmosphere is off.
The stock market favors low interest rates because money is cheap; the bond market prefers low inflation because purchasing power remains stable; gold also likes it because opportunity costs are low. So everyone thinks they are winners. But don’t forget, if economic momentum weakens, corporate profits may shrink, and stock prices will follow suit.
The current market is like celebrating the end of exams in advance, but the report card hasn't come out yet. Core CPI is just a single subject score, not the overall grade.
Even more interesting is that market sentiment swings like a pendulum: yesterday fearing inflation, today fearing recession, tomorrow maybe fearing missing out. Those who truly make long-term profits are often not the most emotional, but the most steady in rhythm.
A big truth: data can influence prices, but it’s hard to change the cycle. Lower inflation is a signal, not the end.
Interaction: Do you think low inflation is more beneficial for the stock market, bond market, or crypto assets?#美国核心CPI创四年新低