Pay close attention to the bond market, particular to the 20 Year Treasury yield which is creeping back up. This is really bad news for the markets, yields could spike higher which could send the market tumbling. This cascade effect could provide an optimal entry into TLT - which is an inverse play on interest rates.
There is currently no reason for the Fed reserve to reduce interest rates. Inflation is creeping back up and the cost implications of tariffs are yet to truly felt in the inflation readings. Meanwhile, the US has lost its perfect credit rating and the debt burden continues to grow. The Fed will not reduce rates if inflation shows no sign of abating. Note that in the UK inflation is back up and I expect this to also be the case in the US.
My plan is to watch this play out and look for opportunity in TLT. I don’t want to get caught up bag holding stocks if there is a major bond crisis. As far as the chart is concerned, I expect a double bottom pattern and bullish confirmation with a break of the neckline.
None of this is financial advice, do what’s best for you.
There is currently no reason for the Fed reserve to reduce interest rates. Inflation is creeping back up and the cost implications of tariffs are yet to truly felt in the inflation readings. Meanwhile, the US has lost its perfect credit rating and the debt burden continues to grow. The Fed will not reduce rates if inflation shows no sign of abating. Note that in the UK inflation is back up and I expect this to also be the case in the US.
My plan is to watch this play out and look for opportunity in TLT. I don’t want to get caught up bag holding stocks if there is a major bond crisis. As far as the chart is concerned, I expect a double bottom pattern and bullish confirmation with a break of the neckline.
None of this is financial advice, do what’s best for you.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.