Regardless if you follow the stock market daily like I do or even monthly, we’ve all been hearing about rising interest rates for months...
While many traders think stocks are set to dip, the truth is that rates rising off of historically low rates actually tends to occur when the economy is picking up. So the market actually trades higher!
In fact, the Federal Reserve’s pumping over $100 billion into the market each month. So even if interest rates do rise over the next several years, they’ll still be rather low.
In other words, money is going to be cheap for a while.
We started the week off a bit rocky with futures reacting negatively to the rise in energy prices and interest rates. Crude oil was trading north of $80 and the 10-year Treasury yield was above 1.60% when Joy of the Trade Head Trader Jeff Zananiri put this report together Monday.
The extended rally in crude oil is pushing it near multi-year highs, boosting energy shares. However, it’s also igniting investor fears of the obvious inflation running rampant in the markets.
And to add more fuel to the fire, both of these factors happening at the same time is ominous for the “inflation is transitory” case...
It’s been Jeff’s view for a few months that the Federal Reserve would be unable to deny the rise in energy, and that it would become a problem not just for the markets but for the real economy as well.
This could be the beginning of what he sees as a potentially parabolic shock rise in energy prices that’ll cause the same chain reaction in oil and gas…
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
2 Agriculture Stocks That’ll Grow Your Portfolio in Q4
October 13, 2021
When I figured out the surge in demand for agricultural commodities is impacting things like fertilizers, you bet your bottom dollar that I got in on the trend.
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
The Real Cost of InflationIf it hasn't touched you yet, it's coming…View in browserView in browser !DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 T…Read More...
0 Response to "Fight off Inflation Fears With These 2 Small-Cap Stocks"
Post a Comment