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How to trade after rate cut expectations are dashed?
@Tiger_comments:Affected by the lower-than-expected guidance in $Advanced Micro Devices(AMD)$ financial report and the market's dampened expectations for a rate cut in March, tech stocks continued to fall. Among them, $Apple(AAPL)$ has fallen for six consecutive days, $Meta Platforms, Inc.(META)$ dropped by 2.48%, $Alphabet(GOOG)$ financial report fell short of expectations, leading to a 7% decline, and even Microsoft, which exceeded expectations in its financial report, also dropped by 2.69%. What triggered tech fall? Is rate cut still possible in March? The Fed will only cut rates when "it has gained greater confidence" that inflation will get to the 2% target. Powell says that "it is likely we don't have enough confidence to cut in March" In other words, rate cuts aren't coming as quickly, as more inflation data is needed before a decision can be made. How to trade tech stocks? Stellar earnings from Apple might be the only solution as other positive factors have already been priced in. What’s your choice? Take profits to hold cash in your account Sell covered calls to hedge Buy puts to bet on significant declines in tech stocks Sell puts to collect premiums during downturns Hold onto good stocks and have faith in Apple and Meta earnings reports. Vote and comment to win tiger coins~
How to trade after rate cut expectations are dashed?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.