đđđI am pitching my tent on the 25bp reality check. Why? With bond yields rising and core CPI picking up, traders are pricing in a huge 90% chance that Fed Chair Kevin Warsh will pull the trigger on a 25 basis points hike this week. It is the expected thing to do. If he skips it, it would make him appear to be asleep at the wheel.
Which asset class suffers the most?
Real Estate will suffer the most as high interest rate is bad for property. Mortgages go up, buyers vanish & commercial real estate refinancing becomes difficult.
A close 2nd would be Bitcoin as it is a speculative risk on asset which would normally be dumped for safety.
3rd would be tech stocks like $NVIDIA(NVDA)$ because high rates hurt growth stocks as future earnings are worth less today.
4th would be Gold as higher yields hurt Gold because it pays no interest. It can be regarded as a safe haven too.
@Tiger_comments @TigerStars @Tiger_SG
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