If you’ve been keeping up with my videos, then you’ve heard me talk about the iShares 20+ Year Treasury Bond (Nasdaq: TLT). This fund tracks a market-weighted index of debt issued by the U.S. Treasury with remaining maturities of 20 years or more, and it has been congesting lately.
But on Thursday, it hit its highest level since the end of February.
Everyone’s been expecting interest rates to go up. However, it appears that the Federal Reserve isn’t quite there yet. Even with inflationary pressure, what are interest rates doing? They’re going lower…
Bond and interest rates have an inverse relationship. So in theory, if the bond market goes higher, it means interest rates will fall.
But what do lower interest rates actually mean?
I know I’ve been highly critical but bullish on technology stocks lately, and lower rates are great news for these names. And right now, there are four large-cap tech stocks on the move I want my readers to see…
Do you remember when the Nasdaq recently cooled off when investors and traders feared that interest rates were going higher? This leads everyone to believe we weren’t going to make much money from tech stocks…
That’s because interest rates are like a wet blanket for these names.
So when bonds move higher and interest yields move lower, that means tech stocks should rally!
Now, lower interest rates aren’t that great for inflation-sensitive stocks — like basic Materials, Industrials and Financials. Higher rates are better for these kinds of stocks because they tend to do well with inflationary pressure.
In other words, deflationary pressure takes the air out of the sectors I mentioned above and puts it back into more speculative names, such as tech stocks.
So what did I do?
I pulled up the S&P 500, isolated the best sector in it for the current market environment, and then used that information to find out where the best hands are, or where we’d have the odds most in our favor.
And I found four large-cap tech stocks on the move.
Check out my short video below to get the names and an even more in-depth understanding of why and how large-cap tech stocks are on the move right now. Be sure to share your thoughts in the comments section at the bottom of this page.
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P.S. Imagine if every weekend was a long weekend…
We’d never have to set an alarm clock for Monday morning ever again… and would be free to do whatever we want, when we want!
Thanks to legendary trader Tom Busby’s latest breakthrough he’s calling the Long Weekend Retirement Plan, retail traders now have the chance to set themselves up for a stress-free, three-day weekend…
I’m talking about taking a simple trade each Tuesday and closing it out on Friday with the chance to lock in double-digit winners like Tom’s already seen.