Recently, the global market atmosphere has been off, and two unexpected situations have made the short positions laugh with joy.

Let's talk about Japan first—they suddenly announced an interest rate hike, moving much faster than expected. What's the problem here? Over the past few years, a bunch of institutions and investors have relied on low-interest borrowing in yen to invest heavily in various global assets. Now that Japan is tightening up, these arbitrage funds need to withdraw quickly. High-risk assets like the stock market and cryptocurrencies are likely to be the first to bear the brunt of this pressure.

Looking at the US again——the rumors about Powell stepping down early are getting more and more outrageous. This person's position is too crucial; if he suddenly leaves, the market's confidence in US financial policy will definitely be shaken. Right now, the risk-averse sentiment is already very tense, and everyone is watching, fearing that one day the sentiment will suddenly collapse.

To be honest, with these two things colliding, it feels like tightening liquidity is just a matter of time. Friends holding risky assets might need to prepare mentally.