Core Viewpoint - The international gold price has surpassed $4000 per ounce, indicating a strong performance during the recent holiday period, which has been termed a "golden week" [1][3] Market Performance - Since September of the previous year, the Chinese capital market has shown strong characteristics, with increasing profitability effects among market participants [1] - As of October 8, the international gold price has risen over 50% this year, outperforming other asset classes [3] Future Outlook - The strong market trend is expected to continue, with increasing market enthusiasm and a potential upward cycle that may not stop at reasonable valuation levels [1] - Patience is advised as the market matures, suggesting that exiting too early may not be wise [1] Federal Reserve's Interest Rate Decision - The recent decision by the Federal Reserve to lower interest rates while the stock market is at historical highs is seen as unusual and raises questions about future market direction [2] - The rationale for the rate cut includes easing inflation data and signs of economic slowdown, which may justify the decision [2] Economic Cycle Insights - Historically, the cycle of monetary policy affecting asset prices and economic conditions is well established, but the current situation is viewed as different due to the Fed's actions at high asset prices [2] - The relationship between interest rates and market dynamics is emphasized, with a warning that ignoring economic principles could lead to greater inflation and currency devaluation issues [2] Long-term Debt Cycle Perspective - The concept of long-term debt cycles, as articulated by Ray Dalio, suggests that the current economic environment may lead to systemic crises due to unsustainable debt levels [3][4] - The importance of recognizing the unique nature of long-term debt cycles is highlighted, advising against applying short-term experiences to current situations [4] Gold as a Safe Asset - Gold is being revalued in the context of major economies entering the later stages of a long-term debt cycle and the shifting global political and economic landscape [4] - The "weaponization" of the dollar has led to a systemic collapse of its wealth storage function for sovereign nations, prompting a search for safer assets like gold [4] Investment Preferences - There is a growing interest in gold and precious metals as safe-haven assets, particularly in China where investment options are relatively limited [5]