Once the news of $5 trillion in liquidity hit the market, everyone was asking the same question: how will this money be spent? What impact will it have on our investments?

In simple terms, this is not a one-time injection, but a gradual release through multiple channels and phases. The Federal Reserve plans to gradually release these funds by increasing government bond purchases, raising overnight repurchase agreements, and loosening financing restrictions on financial institutions. The benefit of this "gentle easing" is obvious—it can ensure stable growth of market liquidity without causing short-term volatility due to rapid influx of funds.

Numbers speak: $5 trillion accounts for over 5% of the global GDP. Once such a large amount is released, global financing costs will immediately decrease, and dollar liquidity will shift from tight to ample. What will happen next? Three things are almost certain: the US dollar index will turn downward, reducing the attractiveness of dollar assets; global capital will begin to reshuffle, withdrawing from traditional dollar assets and flowing into emerging markets and high-yield assets; the valuation center of risk assets will move upward, benefiting stocks, commodities, and cryptocurrencies as they share in the liquidity dividend.

Don't misunderstand—this isn't just a random money dump. The Federal Reserve is doing this because economic growth is slowing, and employment data is deteriorating. They need to implement easing policies to achieve a "soft landing" for the economy. In other words, this liquidity cycle is likely to last quite a while, extending the market’s opportunity window.