Federal Reserve's Rate Cut: AI Drives Market, Real Estate Unchanged

Following the Federal Reserve's decision to cut interest rates, the original prototype of the movie "The Big Short," known for shorting subprime mortgages before the global financial crisis, shared insights on recent market trends. The individual believes that the current interest rate cut cycle will be brief, with a total reduction of 100 basis points before concluding. This cycle aligns with the previous one that ended in December 2024.

While acknowledging that lower interest rates could stimulate some activity in the real estate market, the individual does not expect it to thaw the previously frozen market. This view is shared by other experts. The individual also highlighted that the market's main focus remains on the rapidly developing artificial intelligence (AI) sector, describing it as the current market's biggest narrative. AI is seen as a driving force behind stock market movements and the overall economy.

The individual emphasized the significance of the rise of AI hardware and expressed interest in the power sources of AI companies. Although the individual acknowledged that it might be too early to accurately assess this fast-growing industry, they mentioned nuclear energy as a field of interest. The individual's insights provide a unique perspective on the current market dynamics and the potential impact of AI on the economy.