Sitting here thinking that with the possibility of interest rates being lowered, that bonds would make a fair long term (more than a week) short. About to position myself to find out.
Does anyone else have any long term trades or trends they see coming up?
If interest rates stay low, does that make stocks the only game in town?
The Federal Reserve is preparing to cut interest rates for the first time in a decade because it sees a cooling global economy and no sign of overheating in the jobs market at home.
Since the Fed opened the door to lower borrowing costs last month, plenty more data has arrived to back up the view that “manufacturing, trade and investment are weak all around the world,” Chairman Jerome Powell told Congress at a hearing on Wednesday.
He said June’s jobs report, which showed stronger-than-expected hiring in the U.S., was “great news” -- but not enough to tilt the balance, because wages aren’t rising fast enough to trigger much inflation. In fact, Powell made it clear that inflation is still too low.