Federal Reserve Rate Rise Preview
Former pro rates trader @YiminX brings you his take on where rates are headed and what that means for stocks. Read on!
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All About Our Federal Reserve Notes
Effective immediately, the premium version of this newsletter will feature regular notes assessing likely Federal Reserve rate levels and other policy decisions. You’ve seen the occasional such note here in recent months. These notes are written by former pro rates trader @YiminX. The quality is excellent - not your usual FinTwit dirge from this guy - and the opinions are actionable.
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Let’s now move on to our Federal Reserve preview.
A bullish past week with mixed fundamentals.
Last week, we had a strong week in equities. While SPY was up 3.9%, high-growth strategies like ARKK were up a whopping 8.4%. On the back of very mixed earnings results (AMZN -13.3%, GOOG -4.8%, META -23.7%, APPL +5.8%, MSFT -2.6%), the equities market was helped out by a steep drop in the bond yields. The US 10 Year Treasury yields dropped by 20bp back to just above 4%, with the market sensing an economic downturn for next year which could force the Fed’s hand.
What does this mean for rates and equities? Paying subscribers can keep reading; if you’ve yet to subscribe, just click below (the discount will be automatically applied).