With such Aggressive cuts and as a Malaysian investor, we would see the good and the bad! ๐
Hey Mooers!
Looks like the Fed had decided to take an aggressive stance and cut by 50BP.
With such Aggressive moves! Here are some of the impact I would see.
1. Lesser borrowing cost equal more cost savings in property.
Since the Basis Point cut by 50, we would be looking at property loans cost lesser, when cost are lesser, unfortunately rents will still remain.
There for with that in mind, I am looking into REITs!
Some of the not so REITs but REITs I'm holding is $Brookfield Real Assets Income Fund Inc. (RA.US)$.
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From the looks of it RA is going to get abit more expensive. If you're looking for capital appreciation, this is in my opinion not a recommendation as this stock may soon get more expensive and may get lesser return in % form of dividends.
2. Companies that rely on borrowing to buy products may have a boost.
Companies I would see that need borrowing such as machinery, vehicle etc. May have a boost in more sales.
Those who are following me I think you might have guessed it.
Yup I am looking at you Tesla.
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Tesla will get a boost for few reasons:
1. Lower cost of borrowing allows Tesla to finance more funds in AI research at a lower cost.
2. EV sales may rise as more people will start to have the available funds to buy more Automotive.๐๐
I'll probably be seeing Tesla riding all the way to 250! ๐
3. Cryptocurrency surge.
Of course let's not forget as more and more people are spending. For sure you would see the devaluation of the dollar.
Dollar is slowly shrinking and sentiments may move more into crypto and gold
$Bitcoin (BTC.CC)$ had seen a surge to 62k and had broke the Triangle. This is due to the concern of the devaluation of the dollar from inflation that is happening and they are looking into bitcoin for a safe haven. We may see the 65k mark again! ๐
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If you are in moomoo and unable to buy crypto alternatively you could buy $ProShares Ultra Bitcoin ETF (BITU.US)$ or you could buy the mining company such as $MARA Holdings (MARA.US)$ or $Coinbase (COIN.US)$ as they have the reserve of bitcoins as their Assets.
Unfortunately as a Malaysian, we see no difference in gain due to the devaluation of the Dollar to Ringgit.
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Alright folks! that is all I have to share from here. Those who had diamond handed stocks, grats for holding on!
To those who have holding in cash. Is it too late? I would say try to enter but try and grab it in your preceived value to ride the wave.
Good luck peeps! ๐ May your trades be ever in your favour! ๐
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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