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Deutsche Bank Cuts Forecasts for U.S. Treasury Yields
The Federal Reserve's "non-recessionary rate cut" means that traditional defensive strategies are no longer effective.
The traditional interest rate reduction trading strategy is to choose defensive stocks and high dividend stocks, but this time the Federal Reserve chose to cut interest rates significantly in a relatively loose financial environment, sending a signal to attack. Investors are shifting from defensive stocks to cyclical stocks and large cap stocks, investing in industries such as banks, technology, real estate, and autos.
Soochow Securities: What to buy after the first rate cut by the Federal Reserve?
Looking back at the past 3 rounds of proactive interest rate cuts, Soochow Securities found that growth stocks such as information technology and medical care, as well as cyclical sectors represented by finance, often performed better before and after the interest rate cuts.
The drastic interest rate cut by the Federal Reserve intensifies valuation anxiety, prompting investors to flock to CSI enterprise bond index.
Investors are pouring a large amount of funds into corporate bonds, causing the risk premium to gradually tighten. The Fed's rate cut has reignited hope for avoiding a recession in the USA.
Harris caught up later? The approval rating has continued to rise, now leading Trump comprehensively.
① Recent polls have shown that Harris' approval ratings have significantly increased in both the United States as a whole and key swing states, surpassing Trump. ② Economists analyze that although Harris is the Vice President, she has successfully avoided public criticism of Biden's policies, and some of her campaign promises have gained the support of voters.
The Fed's unprecedented interest rate cuts have prompted Wall Street to urgently search for a new script.
In the case of the Federal Reserve cutting interest rates and the economy remaining stable, the overall call is a winning weapon.