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Mars Mooo wrote a post · Aug 18, 2024 18:31

Would Mooers invest in these financial assets before a rate cut that may happen within the next 12 months?

Hello Mooers!

I would like to share some financial assets that are on my watchlist and/or in my portfolio and, at the same time, would like to hear from your comments and opinions.

With many mentioning that a rate cut may happen, probably within the next 12 months, my plan would be to invest in the following:
High-yield bonds
Crypto
REITs
Small-cap stocks

Let me go through each of them, and if you like this article, please give it a thumbs up. Thank you!
#GIFsFromTenorDotCom
#GIFsFromTenorDotCom

High-Yield Bonds
The reason for investing in high-yield bonds is that they often give investors a much higher yield than regular bonds. With rate cuts, high-yield bonds become more attractive than regular bonds.

Mooers may invest in individual high-yield bonds, while those who have limited capital may invest in high-yield bond funds such as the following:


U.S. High-Yield bond funds
$Fidelity Funds-US High Yield Fund (LU0605520377.MF)$
$Fidelity Funds-US High Yield Fund MDis (LU0532245122.MF)$
Both return more than 4% in the 6-month period.

Take note that some of these funds may distribute monthly dividends to their investors.


Crypto
The reason for investing in crypto is that it gives Mooers much higher returns when compared to regular bonds and other financial assets. 

At the time of writing, the YTD performance for $Binance Coin (BNB.CC)$ is more than 70% , $Bitcoin (BTC.CC)$ more than 40% , $Solana (SOL.CC)$ more than 38%, and both $Dogecoin (DOGE.CC)$ and $Ethereum (ETH.CC)$ more than 13%.


REITs
The reason for investing in REITs is that the rate cuts would lower their cost of capital, as REITs are often leveraged to acquire properties and fund developments.

With rate cuts, it will reduce borrowing costs, boost profitability for REITs, and drive their stock price higher.



Small-cap stocks
Similar to REITs, small-cap stocks are likely to benefit from rate cuts as smaller companies generally have higher levels of debt than big companies such as the Magnificent Seven ( $NVIDIA (NVDA.US)$ , $Meta Platforms (META.US)$ , $Amazon (AMZN.US)$ , $Alphabet-C (GOOG.US)$ , $Microsoft (MSFT.US)$ , $Apple (AAPL.US)$ and $Tesla (TSLA.US)$ ).

Mooers may invest into individual small-cap stocks and ETFs such as $iShares Russell 2000 ETF (IWM.US)$ and $Vanguard Small-Cap Value ETF (VBR.US)$ .

Please note that all the above-mentioned financial assets are non-exhaustive, as it is difficult to list them all here. If you find those examples useful to you, please give this article a thumbs up. Thank you!
#GIFsFromTenorDotCom
#GIFsFromTenorDotCom

Hmm... what would Mooers invest if a rate cut happened in the next 12 months? Would Mooers invest in high yield bonds, crypto, REITs, and small-cap stocks ? Please come and share your thoughts, and also participate in the vote below.

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!



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Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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Mars Mooo
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