$Direxion Daily 20 Year Plus Treasury Bull 3x Shares(TMF)$
Is the rate going to go down? Apparently not... At least not yet... If you wonder what is going on, the market is positioning itself for a higher inflation post US election with a Donald Trump's victory...
A tariffs policy against all nations, friendly or otherwise, is a recipe for disaster. While bringing additional revenue for the government, given US has little manufacturing, these costs will inevitably be passed on to the residents. Higher pricing brings inflationary pressure to the economy. The country and people suffer as a result.
Inflation means rates hike instead of rates cut! That is indeed a concern for Treasury funds like this. I bought in anticipation of more rates cut from the federal reserve bank. So, what now?
Donald Trump's victory is not assured and perhaps overrated by the market. Given that interest rate is still on the high side in US, there's still plenty of opportunities for accumulation and turning this around eventually.
For me, I am running a mid to long term Auto-Invest strategy for this product. Now is still accumulation time, Donald Trump or otherwise. When rates are high, it is a matter of when rather than if the cuts will come... Just do it slowly to reduce the risk of taking too much risk. This is a leverage position after all...
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