September 2024: No rate cut? 50 bps cut? 25 bps cut? How huh?
Hello Mooers?
Even though over 90% of respondents in my recent quick poll for cost of living (August 2024) said that living expenditures had not decreased , many believe that there will be a rate cut of at least 25% in September 2024. The cost of living (August 2024) can be found in the link below.
So, will there be a rate cut in September 2024? How much will be the rate cut? Is it going to be a 25 bps rate cut? or a 50 bps rate cut? Or maybe there will be no rate cut at all?
Instead of overthinking how the situation will unfold, why not invest comfortably by dividing your investment into three parts: one for a no rate cut situation, another for a 25-bps rate cut, and the last one for 50-bps? By doing so, Mooers will not have to risk their entire investment and will be able to invest according to their comfort level.
For example, Mooers can choose to invest in a 4:4:2 ratio, that is, invest 40% in a no rate cut situation, 40% in a 25-bps rate cut, and 20% in a 50-bps rate cut. Mooers may choose other figures that they are comfortable with.
Some stocks to consider for a no rate cut situation include the Magnificent Seven stocks ( $NVIDIA (NVDA.US)$ , $Meta Platforms (META.US)$ , $Amazon (AMZN.US)$ , $Alphabet-C (GOOG.US)$ , $Microsoft (MSFT.US)$ , $Apple (AAPL.US)$ , and $Tesla (TSLA.US)$ ) and money market funds such as $CSOP USD Money Market Fund (SGXZ96797238.MF)$ and $Fullerton SGD Cash Fund (SG9999005961.MF)$ .
For 25 bps or 50 bps rate cuts, there will be more choices to consider. Besides the Magnificent Seven stocks, Mooers may invest in these financial assets such as high-yield bonds (e.g., $PIMCO GIS Asia High Yield Bond Fund (IE00BGSXQR19.MF)$ , $Fidelity Funds-US High Yield Fund (LU0605520377.MF)$ ), crypto (e.g., $Bitcoin (BTC.CC)$ , $Ethereum (ETH.CC)$ ), REITs (e.g., $CapLand IntCom T (C38U.SG)$ , $Mapletree PanAsia Com Tr (N2IU.SG)$ , $American Tower Corp (AMT.US)$ ), and small-cap stocks (e.g., $iShares Russell 2000 ETF (IWM.US)$ ). For more information about investing in these financial assets, please click the following link.
Would Mooers invest in these financial assets before a rate cut that may happen within the next 12 months?
https://www.moomoo.com/community/feed/112982561981222
https://www.moomoo.com/community/feed/112982561981222
Hmm... do Mooers think that there will be a rate cut? Or do Mooers think that there will be no rate cut? Please come and share your thoughts, and also participate in the vote below. Mooers can select one or more that applies.
That's all for today, and always remember to DYODD (Do your own due diligence) when making any kind of investment.
Thank you and Godspeed!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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