Fed Rhetoric Turns Hawkish: ETF Strategies to Play Rising Yields
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 17 2024
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Source: NASDAQ.COM
- Federal Reserve's Rate Cut Delay: Federal Reserve Chair Jerome Powell indicates a delay in rate cuts due to persistent inflation challenges and slow progress towards the 2% target.
- Change in Fed Rhetoric: Fed officials now view the latest inflation surge as non-temporary, shifting away from previous narratives of imminent policy easing.
- Timing of Rate Cuts: Projections suggest a rate cut might not occur until September at the earliest, with November seen as politically sensitive due to elections.
- Investing Strategies for Rising Rates: Suggestions include senior loans, floating rate bonds, cash, short-dated fixed income, and niche ETFs that guard against rising rates.
- Inverse ETFs and Shorting Treasuries: Recommendations include inverse REIT or utility ETFs, as well as options for shorting U.S. treasuries in a volatile environment.
Analyst Views on TFLO
Wall Street analysts forecast TFLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TFLO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
