Home Finance Doomsday Indicator or Rare Opportunity

Doomsday Indicator or Rare Opportunity


Talking heads may share many characteristics whether they represent politics, finance or sports. One interpersonal feature that has been particularly relevant recently is hyper-dramatic events. “That team will never draft that player,” Fictional NFL commentator said team draft player.

The Fed and interest rate analysts currently find themselves in a similar dance. After the US Federal Reserve announced no change in rates last week, many people took to social media to hyperbolize and rant about how the Fed will never remove rates from 0% and how it could lead to an inevitable stock market crash. will cause.

same old song

Those who traded in the aftermath of the 2008 crash may be feeling some déj vu these days relative to the will-they-or-not-they mentality with the Fed raising rates by 0%. As equity markets hit new high after new high, analysts and social media users alike predicted the fed funds rate would never hit 0% again. And then the Fed raised rates several times between 2015 and 2018.*

SPXS&P 500 Index

Source: dxFeed Indexing Services (https://indexit.dxfeed.com)

a new way of doing business

Can rates stay close to 0% for months and years? Of course! Will they be there forever? Although it is possible, there is no historical precedent. Since the inception of the Fed, sometimes rate cuts have been followed by hikes. Short 2YR Yield Futures currently represent around 0.175% in short-term interest rates. Buying S2Y futures would demonstrate a potential reversal to the historical norm, while selling them is the opposite.

Get exposure to popular markets with standardized tick values ​​and expiration dates on Small Exchange.  Look why there are small and big explosions.  >>”/></a></span></span><!-- end HubSpot Call-to-Action Code --></p>
<h3>S2Y  Short 2YR Yield Index</h3>
<figure id=

Source: dxFeed Indexing Services (https://indexit.dxfeed.com)

The mission of the Fed is not to burn down the house, as some talking heads may project, but to guide the financial markets in a way that usually commentators say, “Oh yes, this should be the place.”

*Data from https://www.federalreserve.gov/

To learn more about how Small Exchange Futures is merging the efficiency with the clarity of stocks, be sure to subscribe to them. youtube channels and follow them Twitter So that you never miss an update.

© 2021 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. It is a designated contracts market registered with the US Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not cease to meet the financial objectives, position or specific needs of an individual investor. Trading futures involves the risk of loss, including the potential for losses exceeding your initial investment.

new call-to-action

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.

For latest entertainment news| health news| political news| sports news| travel news| Covid-19 news| Tech news| Digital Marketing| Lyrics


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.