TLT hitting $100 again depends-To The Moon - Tiger Brokers Online Investing Community - To The Moon

TLT hitting $100 again depends on a few things, and it's definitely not a sure thing. Here's what I think, based on some market logic:

Rate Cut Expectations: If the expectation of rate cuts by the Federal Reserve strengthens, then yes, TLT (the 20+ year Treasury bond ETF) could very well climb towards $100. This is because bond prices and interest rates have an inverse relationship. When rate cuts are anticipated, investors flock to bonds, driving their prices up and yields (interest rates) down.

Market Volatility: However, the current market environment is pretty volatile. Even with strong rate cut expectations, other factors like inflation data or geopolitical tensions could throw things off course.

Current Price and Trend: Right now (as of June 12, 2024), TLT is hovering around $130. A climb to $100 would be a significant jump, and it depends on how quickly and decisively those rate cuts are priced into the market.

Overall, there's a chance TLT could reach $100 on strong rate cut expectations, but it's not guaranteed. Keep an eye on economic data and the Fed's messaging for clues about the strength of those expectations.

TLT Return to $100 Amid Rate Cut Expectations?

On June 5, the Bank of Canada cut the overnight rate by 0.25%, lowering the base rate from 5% to 4.75% for the first time in four years. This rate cut has led the market to expect that the European Central Bank and the Federal Reserve will also cut rates. US Treasury bond ETFs TLT and TMF have risen by 3% and 10% this week. ------------------- Is now a good time to buy TLT? Which other stocks would benefit from rate cuts?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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This is because bond prices and interest rates have an inverse relationship. When rate cuts are anticipated, investors flock to bonds, driving their prices up and yields (interest rates) down.</p>\n<p>Market Volatility: However, the current market environment is pretty volatile. Even with strong rate cut expectations, other factors like inflation data or geopolitical tensions could throw things off course.</p>\n<p>Current Price and Trend: Right now (as of June 12, 2024), TLT is hovering around $130. A climb to $100 would be a significant jump, and it depends on how quickly and decisively those rate cuts are priced into the market.</p>\n<p>Overall, there's a chance TLT could reach $100 on strong rate cut expectations, but it's not guaranteed. Keep an eye on economic data and the Fed's messaging for clues about the strength of those expectations.</p></body></html>","text":"TLT hitting $100 again depends on a few things, and it's definitely not a sure thing. Here's what I think, based on some market logic: Rate Cut Expectations: If the expectation of rate cuts by the Federal Reserve strengthens, then yes, TLT (the 20+ year Treasury bond ETF) could very well climb towards $100. This is because bond prices and interest rates have an inverse relationship. When rate cuts are anticipated, investors flock to bonds, driving their prices up and yields (interest rates) down. Market Volatility: However, the current market environment is pretty volatile. Even with strong rate cut expectations, other factors like inflation data or geopolitical tensions could throw things off course. Current Price and Trend: Right now (as of June 12, 2024), TLT is hovering around $130. A climb to $100 would be a significant jump, and it depends on how quickly and decisively those rate cuts are priced into the market. Overall, there's a chance TLT could reach $100 on strong rate cut expectations, but it's not guaranteed. 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