$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US...
$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ Bond holders today should be more concerned about how long high interest rates will last, rather than whether there will be a rate cut. Market expectations are now focused on how many rate cuts there will be this year. Most likely, there will be rate cuts. Last year, interest rates temporarily dropped significantly because the scenario of an emergency rate cut had surfaced. With the current policy interest rate ranging from 5.25 to 5.5, and each rate cut being 0.25 at a time, the allure of interest rates still remains significant, which means that bonds will continue to be in a disadvantageous situation. Unless a scenario of a substantial rate cut emerges, there won't be any visibility. On the other hand, for companies performing well even in a high interest rate environment, a rate cut would be a tailwind. I currently focus on a high-tech portfolio, but I always keep an eye on interest rates and bond prices so I can adjust my views if necessary. At the very least, for those who have purchased TMF, I recommend being prepared for contrarian challenges and investing within your means. This is based on my personal experience from previous purchases.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment