Central Bank of the US held interest rates steady at 5.25%-5.50%. Consensus is to hold the rate until the June meeting whereby there is an expectation of the first rate cut.
Below is the "dot plot" in the Summary of Economic Projections (SEP). This is the second of four SEPs for the year and the next one will occur in June. Most of the Board members project that the interest rate by year end will be around 4.75%, which represents around three rate cuts. Cutting the rate by 75 basis points is not exactly significant IMO.
By all accounts, the US economy is proving to be resilient and after this last earnings season, most companies forecast favorable 2024 conditions. The next earnings season kicks off on Friday, April 12 with the big banks reporting.
My current hedge is a sideways market that is slightly bullish. Two leveraged ETFs that have performed well for swing trades for me are NVDU 0.00%↑ (Nvidia-themed 1.5x leveraged ETF) and GGLL 0.00%↑ (Google-themed 1.5x leveraged ETF).
Admittedly, it's much tougher to make money these days and the margins aren't nearly what they were in 2023. But, keep the grind alive!
Note: Please read this site's 24Hour Journal disclaimer regarding finance and investing information.
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ANALYSIS: Hedging Bullish After the Summary of Economic Projections
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Central Bank of the US held interest rates steady at 5.25%-5.50%. Consensus is to hold the rate until the June meeting whereby there is an expectation of the first rate cut.
Below is the "dot plot" in the Summary of Economic Projections (SEP). This is the second of four SEPs for the year and the next one will occur in June. Most of the Board members project that the interest rate by year end will be around 4.75%, which represents around three rate cuts. Cutting the rate by 75 basis points is not exactly significant IMO.
By all accounts, the US economy is proving to be resilient and after this last earnings season, most companies forecast favorable 2024 conditions. The next earnings season kicks off on Friday, April 12 with the big banks reporting.
My current hedge is a sideways market that is slightly bullish. Two leveraged ETFs that have performed well for swing trades for me are NVDU 0.00%↑ (Nvidia-themed 1.5x leveraged ETF) and GGLL 0.00%↑ (Google-themed 1.5x leveraged ETF).
Admittedly, it's much tougher to make money these days and the margins aren't nearly what they were in 2023. But, keep the grind alive!
Note: Please read this site's 24Hour Journal disclaimer regarding finance and investing information.