Fed likely to cut rates below 3%, making bonds attractive now, Guggenheim says.
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So we are currently having one of the longest green streaks or longest rallies since September of 2021. This is coming from CNBC and I'm here to update you on overall market conditions. What's going on Team? It's Ricky with tech Solutions I Really hope that you learned something new and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. Today's video is going to be very short and sweet, so let's just go ahead and jump right into it.

The first thing that we're going to be talking about is I'm sorry I said September It's actually November of 2021 so NASDAQ finishes higher to clinch the longest winning streak since November of 2021, right? If we take a step back and look at the overall NASDAQ market for QQQ on the 4-Hour time frame, we can see from overall lows which was last Friday uh to current highs pretty much testing the previous resistance level again previous just making sure that I bring awareness to that of right around 374 375 Uh, right now that is a 9% move. So for Tqqq which is the triple leverage ETF that I personally like to trade right? from overall lows to overall highs, we could see that we offer about a 29% return and again this has been in about 1 and a half weeks. So a very very attractive return on NASDAQ and S&P 500. Uh, but what's to come right? I Wanted to share this article with you guys I Found it to be quite interesting.

It says Fed is likely to cut rates below 3% making bond market attractive now. So what exactly does this mean? Well, a lot of us know, right? If you've been following these F1c meetings which are these like Fed meetings where the Federal Reserve comes together on a monthly basis and they decide based off of economic data, if it's good or if it's bad and depending on how the economic data is coming in, they determine should we be raising rates or should we be pausing meaning leaving it as is as right now based off of what Jerome said Jerome Pal said who's the head of the Federal Reserve on the last F1c meeting he has no expectation to be cutting interest rates anytime soon, and he says None of the members are even talking about that it's either pausing or raising interest rates based off of the economic data that's coming in, right? So we know that we're at around 5.25 to 5.5% over the last several meetings. Right? Because we've paused with three consecutive meetings the past three months, we haven't raised interest rates. We pretty much have maintained the interest rate at what they are.

We are at an unchanged 22-year high, right? But what's to come, right? We um, we have then them taking the FED fund rate down a bit below 3% and pausing the balance sheet runoff in which we think might be in a recession, right? So the whole idea behind that is, what does it mean by cutting rates below 3% It simply means I wanted to provide this for you. It simply means that they're going to make it more attractive. They're going to make it more attractive for other avenues of investment because now saving accounts and CD accounts right are going to be earning so much less than what what they were before. So when they drop that right then, they're going to look for a safer way to invest their money, not necessarily the stock market.
And as of right now, that's probably going to shift to treasury Bonds, right? Uh, for those that are unaware, Treasury Bonds hit what was it like, a 16y year high. We went to previous highs of what they were back in 2007. A little scary to talk about that, right? They're at the same level that they were back in 2007 and what happened in 2008 in 2009, right? Uh, But as of right now, yep, Treasury bonds are a pretty attractive investment. At least they were when they surpassed 5% They've corrected themselves since then.

but again, a much more attractive investment because in comparison to the other safer form of Investments as CDs Andor saving accounts, right, which is pretty much a guaranteed interest at whatever that return might be. Now, they're going to be earning Less on these saving accounts. And these CD accounts Now, the Treasury Market is going to be viewed as not only a safer form of investment versus the stock market Market, but also because they're offering such an attractive rate at nearly 5% pretty much guaranteed. Then again, it it pretty much just encourages people to kind of move their money from saving accounts to Uh and CD accounts all the way over to Treasury Bonds Uh, which again offer a much more attractive investment, especially if the Federal Reserve does begin to cut rates below 3% Just something to take into consideration.

And I Think that they said it quite nicely here, right? So it says we're frankly not getting paid enough to reach further down. Uh, the Capital Structure said Adam blotch a Portfolio Manager uh, Total Return Team. so adding that they are keeping 20 to 30% in dry power across most of their strategies to take advantage of any stress ahead. So the whole idea is again, they're not leaving enough pretty much room for these institutions to be able to make their money right.

Um, and he get he gets a little bit more into detail about where're focused again to locking in record high you know, you know, current yields, which again, bringing us back to the treasury yields being at 2007 levels, a much more attractive and safer form of investment than investing your money in the stock market. I've heard more people talk about investing in treasury uh, bonds more now than I have in my adult life than ever before, right? And it's because again, those treasury bonds are pretty much paid back by the government, so it's as close to guaranteed as possible. The stock market is not guaranteed, right? You can invest half a million dollars in the stock market and it doesn't need to yield you any guaranteed return. Bond Market's different Right when it comes down to these treasury bonds.
they offer a specific rate and when they surpassed 5% you have to think people with hundreds of thousands of dollars if not millions of dollars are going to get a guaranteed return of at least 5% for whatever the timeline might be for that treasury bond. So something to take into consideration. The last thing that I want to share with you is the reason I'm sharing this with you is the reason I Found that article to be so interesting is if demand does begin to pick up for these treasury bonds bonds, normally the stock market reacts in a negative way to that because money is being taken away from what could be invested in the stock market and now being invested in safer Avenues such as treasury bonds, right? And the last time that this was announced that hey, Treasury yields treasury bonds uh, surpassed 5% the stock market sold off because the market knows that when demand begins to pick up in other avenues, then demand begins to slow down for the stock market and it becomes a less attractive, less, yeah, less demand. uh for the overall stock market.

So just something to take into consideration, especially after this really strong rally that we've experienced for the past week and a half. It's going to be very interesting to see how we end the week right. The last thing that I quickly wanted to end with is if we look at the overall NASDAQ market right I Pointed it out in the very beginning of this video we are approaching previous highs of around 374, just something to take into consideration. It doesn't mean that it has to get rejected just like it has before, but the last time we ran up we did get rejected which has been a common resistance range.

And after a 1 and 1/2 week rally, we just can't be surprised, right? RSI Extremely overbought Macd overextended. We shall see, right? Is the demand going to continue to push the NASDAQ market and S&P 500 to new highs ending the year strong? Or are we going to just get rejected once again and sell back off to previous lows? Something that we'll have to wait and see, right? Why? Try to predict when you can wait and react right? A very simple approach that we try to take. Uh, when it comes down to trading these markets. So again, I'm excited to take on the market with you guys all tomorrow at our live trading session.

I Trade live every morning and I'd love to see you there. It's the second link in the description down below and you get to see every entry, every exit, every thought process behind every trade. My good trades, my bad trades. You get to see all of it right.

and it's live real time. every single day right at Market Open And if you want to see this, it's the second link in the description down below so you can watch me trade live as soon as tomorrow. I Appreciate your time, Hope that r a thumbs up! Please consider subscribing And like always, let's make sure that we end the year on our Green n Take Care team!.

By Stock Chat

where the coffee is hot and so is the chat

26 thoughts on “Explained: fed expected to cut rates soon…”
  1. Avataaar/Circle Created with python_avatars Tesla100 says:

    I think they are done hiking and will leave current interest rates for longer until inflation is really under control or something breaks then they will pivot. Historically market goes into recession when Fed pivots it hasnt never been canceled so if people say this time will be different. Well…good luck

  2. Avataaar/Circle Created with python_avatars Nguyen Chau says:

    As the Federal Reserve sustains interest rates and hints at potential hikes, this serves as a critical indicator for financial planning. Coupled with a 'solid' economic outlook and inflationary pressures, the investment landscape is becoming increasingly complex. To navigate this, consider diversifying into cryptocurrencies, which are less affected by traditional market forces. My success in acquiring 23 bitcoins in seven weeks, thanks to Cheryl Atonal's trading insights, highlights the untapped potential of this alternative asset class.

  3. Avataaar/Circle Created with python_avatars Levi Corbett says:

    SQQQ today and through next week. QQQ pullback to 360 and then bounce in spring

  4. Avataaar/Circle Created with python_avatars Leora says:

    Another great video and explanation!

  5. Avataaar/Circle Created with python_avatars nicolas benson says:

    Higher interest rates, concerns about a possible recession and instability in the banking system have plagued smaller stocks. I'm still at a crossroads deciding if to invest $400k on my stock portfolio. what’s the best way to take advantage of the market?

  6. Avataaar/Circle Created with python_avatars Peter Leonard says:

    This is why I’ve put money in TMF. I’m expecting to make good money on it within a year or two.

  7. Avataaar/Circle Created with python_avatars Ad Pitre says:

    If fed will pivot there will be a crash history repeats itself

  8. Avataaar/Circle Created with python_avatars Alex Whitman says:

    Does anyone use Ricky's live trading? Is it really live, can I mimick his trades? Worth the 499?

  9. Avataaar/Circle Created with python_avatars steve chang says:

    cut rates, will that be bullish or bearish?

  10. Avataaar/Circle Created with python_avatars A T says:

    Clickbait title. JP already spoke, no rate hike cuts soon, I’m sure months to come as it stays flat that’s when we see the downturn in the market.

  11. Avataaar/Circle Created with python_avatars MorroBoxTrading says:

    Thanks buddy!

  12. Avataaar/Circle Created with python_avatars Daniel Hernandez says:

    Another wonderful video on your insight. Thx again buddy.

  13. Avataaar/Circle Created with python_avatars Esperia 2019 says:

    RATES WILL BE 20% TOMORROW

  14. Avataaar/Circle Created with python_avatars Rad R says:

    You tripping bro!

  15. Avataaar/Circle Created with python_avatars TraderJohnnyT says:

    My daily trader vlogs available to anyone interested. First Bearish position

  16. Avataaar/Circle Created with python_avatars 787UrbanApparel says:

    But when GOV does not want to lift the debt ceiling ; everyone holding treasuries and bonds shit their pants . 😂😂😂

  17. Avataaar/Circle Created with python_avatars Shark Trends says:

    Thanks Ricky!

  18. Avataaar/Circle Created with python_avatars DJ Romie #teamshowtime says:

    Great info. Waiting and staying cashed

  19. Avataaar/Circle Created with python_avatars Sam McVea says:

    Go Ricky go 😊

  20. Avataaar/Circle Created with python_avatars Mark BKLYN says:

    EXPLAINED: Fed Expected To Cut Rates Soon…and whos Going Buy t bone to support$$ wars

  21. Avataaar/Circle Created with python_avatars Mark BKLYN says:

    Congo Trucker Strike Blocks Exports of Copper and Cobalt

  22. Avataaar/Circle Created with python_avatars shit horse says:

  23. Avataaar/Circle Created with python_avatars revo1974 says:

    Historically the stock market dumps after the Fed pivot

  24. Avataaar/Circle Created with python_avatars Will Chatman says:

    1st comment my guy

  25. Avataaar/Circle Created with python_avatars TopTierG says:

    first

  26. Avataaar/Circle Created with python_avatars AnointedOne says:

    Yo

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