Choose TLT or ARKK After Rate Cut?

On September 18, 2024, the Fed cut rates by 50 basis points to 4.75%-5%. The Fed forecasts a total of 100 basis points in cuts for 2024 and another 100 basis points in 2025. TLT fell below $100 yesterday. With the 50bps rate cut confirmed, can TLT start a new uptrend? Additionally, the rate cut might benefit small and mid-cap growth stocks. Will you choose IWM or ARKK?

$iShares 20+ Year Treasury Bond ETF(TLT)$  $ARK Innovation ETF(ARKK)$   The recent interest rate cut by the Federal Reserve can have different impacts on TLT (iShares 20+ Year Treasury Bond ETF) and ARKK (ARK Innovation ETF), so your choice depends on your investment goals and risk tolerance. TLT (iShares 20+ Year Treasury Bond ETF) - Interest Rate Sensitivity: TLT is highly sensitive to interest rate changes. When interest rates fall, the price of long-term bonds typically rises, which can benefit TLT. This makes TLT a good option if you expect rates to continue falling. - Stability: TLT is generally considered a safer investment com
avatarIykyk
06:18
Choose whatever u like
avatarWallStreet_Tiger
09-19 19:30

Which asset would you choose after Fed's 50bps rate cut?

Yesterday, after Fed announced a 50bps rate cut, US stocks experienced a roller-coaster ride. Powell’s speech suggests that the 25bps intended for July could be included in the September cut. However, Powell also expressed a hawkish stance, indicating that the Fed won’t continue cutting rates at this pace.50 bps rate cut is a significant catalyst for the market.The most likely beneficiaries of the rate cut are U.S. Treasury bonds and small-cap growth stocks. BU.S. Treasury prices have a predictable upward trajectory. However, $iShares 20+ Year Treasury Bond ETF(TLT)$ closed at $99 yesterday, presenting a good buying opportunity.Moreover, lower borrowing costs for small and medium-sized companies will improve their profitability. As a result,
Which asset would you choose after Fed's 50bps rate cut?
avatarHappiness.
09-19 17:39
Same, I don't know is everything will different with everyone excepts
avatarETF Tracker
09-19 15:30

Fed Rate Cut Sparks Opportunity: Small-Cap Sectors Ready for Growth

With the Federal Reserve poised to release its “rate-cut magic,” small-cap sectors are gearing up to seize the opportunities presented by the latest round of interest rate reductions. The Fed’s decision to cut the federal funds rate by 50 basis points to a range of 4.75% to 5.00% marks the first rate cut since 2020, following a series of rate hikes that had elevated rates to their highest level in 23 years.While the Russell 2000 index has surged by 5% in anticipation of the rate cut, not all small-cap stocks will benefit equally from the lower borrowing costs. So, which sectors should investors focus on, and which ETFs offer the best opportunities?Financial Sector: Rate Cuts Boost Financial FirmsSmall-cap financial companies, including regional banks, insurance firms, and lending instituti
Fed Rate Cut Sparks Opportunity: Small-Cap Sectors Ready for Growth
avatarShernice 2000
09-19 15:24
Market Shift:Big Caps Lose Steam, Small Caps Shine $Instacart, Inc. (Maplebear Inc.)(CART)$   $NVIDIA Corp(NVDA)$  $Tesla Motors(TSLA)$  $Microsoft(MSFT)$  $Amazon.com(AMZN)$  $Alphabet(GOOG)$  The initial rate-cut boost has faded for the "Magnificent 7" big cap stocks, with gains retracting due to potential fund reallocation or reassessment of growth prospects.Market Shift: Big Caps Lose Steam, Small Caps Shine Meanwhile, small cap stocks are surging, with some reaching 52-week highs. This suggests investo
avatarOptionsAura
09-19 14:58

How to Safely Go Long on U.S. Treasuries in the Rate Cut Cycle?

In the early hours of September 19, the Fed announced a 50 basis point rate cut, marking its first reduction since March 2020.Since 1984, the U.S. has experienced six rate cut cycles:1984-1986: 26 cuts over 23 months, totaling 562.5 bps.1989-1992: 24 cuts over 38 months, totaling 681.25 bps.1995-1998: 7 cuts over 40 months, totaling 125 bps.2001-2003: 13 cuts over 29 months, totaling 550 bps.2007-2008: 10 cuts over 14 months, totaling 500 bps.2019-2020: 5 cuts over 7 months, totaling 225 bps.In all six cycles, the 10-year Treasury yield declined. After the rate cut cycle ended, the yield typically rebounded. Here’s how it breaks down:First Three Months Post-Cut: Anticipation of cuts leads to a notable drop in yields, and the decline was significantly higher than that of other stages, avera
How to Safely Go Long on U.S. Treasuries in the Rate Cut Cycle?

What should investors care about after first 50bps rate cut?

The 50 basis point rate cut to start the cycle surprised at least half of investors.There are 25 basis points is the compensation for July.Many investors in the market point of view is that July can open the rate cut, and Powell in order to "stabilize" hard to see two more months of data off to September.The 50 basis points, in fact, is 25 basis points in September, plus 25 basis points in July compensation!Even 50 basis points, still behind the curve.According to the Fed's own point of view, this time is "calibrated policy stance" - do not want to fall behind the curve, but also do not want to signal the risk of recession, so the action to see at first glance seems to be very large, in fact, just behind the market too much to add.For the first time did not give the market "clear signal".P
What should investors care about after first 50bps rate cut?