No Data
The Nasdaq surged, defensive stocks stagnated, long-term bonds fell, and the Federal Reserve ignited market risk appetite in the United States.
The overnight US Treasury bond trend is divergent, with the 2/10-year Treasury yield curve reaching its steepest level since June 2022. The reason is that the Federal Reserve significantly cut interest rates by 50 basis points, boosting inflation expectations, increasing the risk premium for long-term bond investments, and causing prices to fall accordingly; while short-term bonds are more attractive due to higher nominal yields.
US Securities Held Outright by Fed Decline on Treasury Securities
The interest rate cut by the Federal Reserve has become the focus of the market again, with the narrative of the US economy's soft landing.
This week, the Federal Reserve held its most important meeting in recent history, with all investors' attention focused on one question: Did the Federal Reserve initiate a timely rate-cutting cycle to prevent the economy from slowing down too quickly?
Loose cycle begins! Take history as a lesson: There is a hidden connection between FED interest rate adjustments and election results.
①There is less than 7 weeks until the November 5th election. ②When the Federal Reserve cuts interest rates, the party in control of the White House has lost 5 out of 6 elections.
China and Japan, the two major creditors, reduced their holdings of US bonds in July: China's total holdings decreased by nearly 40 billion US dollars this year.
On Wednesday (September 19th) local time, the US Treasury Department released the Treasury International Capital (TIC) report for July 2024. The report shows that the scale of US Treasury bonds held by foreign investors reached a new high in July. However, Japan and China, the two largest foreign 'creditors' of the United States, both chose to reduce their holdings.
Bond Market Gets a Fed Wake-Up Call After Pricing in a Recession
Invest With Cici : Very good article. How to allocate various assets in a balanced manner and increase the risk tolerance of portfolio positions is a subject that every investor needs to understand!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Moomoo Research OP Invest With Cici :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Censorship here : This clams schd has Microsoft within its holding which is incorrect. This facts of this is false
Seven Lady : I think Moo Moo read my mind, as I was asking myself this very same question today, and waa laa, this article popped up to answer it. Thank you for the tips. I most definitely will be changing up my portfolio, as I'm heavily invested in technology companies and American technology companies only. Which is very worrying to me. Even though I'm not sure if this article isn't being a little biased. As it only seems to suggest the only two markets that's great for diversifying one's portfolio is the Hong Kong and American stock market ETF's stocks, gold and bonds or did I misinterpret it??