Wall Street's bet on a Fed rate cut by September is all wrong, says inventor of bond market volatility gauge

How high will rates go to battle inflation is one question investors hope to get answers to when Fed Chairman Jerome Powell makes a Capitol Hill appearance on Tuesday.

No matter what the Fed chief has to say this week, the market has one idea stuck in its brain right now, and it’s all wrong, says our call of the day from volatility expert Harley Bassman. Investors have been particularly rushing out of 10-year Treasurys bonds TMUBMUSD10Y , based on fears sticky inflation will cause higher Fed rates at least in the short term. That has pushed yields higher — to above 4% last week —amid an ongoing yield curve inversion — when short-term interest rates exceed long-term ones.

So what should investors do about Wall Street’s wrong-way bet? The money manager sees an opportunity via the current shape of the yield curve. For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

ConvexityMaven always brings the 🔥

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

These are Wall Street analysts' favorite global stocks for U.S. investorsA weaker dollar and expectations of an economic rebound in China have bolstered global stocks. Rana sugar ka kya hai future
Source: CNBC - 🏆 12. / 72 Read more »

Top Wall Street analysts pick these stocks for attractive returnsTipRanks analyst ranking service pinpoints Wall Street's best-performing stocks, including Nvidia & Workday. Clickbait to $$$$$ join CNBC prime
Source: CNBC - 🏆 12. / 72 Read more »

Wall Street Concedes There Is Finally an Alternative to StocksWhy Wall Street is letting go of TINA—the notion that 'there is no alternative' to stocks Obvious. See: earnings last 12 months. Stock Market has never not been risky.
Source: WSJ - 🏆 98. / 63 Read more »

It's Hell Week on Wall Street | CNN BusinessWall Street investors are gearing up for their version of Hell Week — a torrent of jobs data coming over the next few days could easily lead to volatile market swings. Which the rich are banking on. Chinese news network. Fake news As my financial advisor always says - Ignore the headlines and follow the history…
Source: CNN - 🏆 4. / 95 Read more »