Black swan hedge fund says Fed rate cuts will signal market crash

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 45 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 42%
  • Publisher: 63%

Mark Spitznagel أخبار

Interest Rate,Financial Markets,Market Volatility

While U.S. financial markets debate the timing of interest rate cuts, one tail-risk hedge fund is warning that investors should make the most of recent...

NEW YORK - While U.S. financial markets debate the timing of interest rate cuts, one tail-risk hedge fund is warning that investors should make the most of recent economic optimism while it lasts, as a shift to lower rates will signal a dramatic market crash.

Funds such as Universa often use credit default swaps, stock options and other derivatives to profit from severe market dislocations. Generally they are cheap bets for a big, long-shot payoff that otherwise are a drag on the portfolio, much like monthly insurance policy payments. "This economy is built on low interest rates," said Spitznagel. "There are lag effects when you reset interest rates like we had."

Buy-and-hold stocks are easy enough to find if you limit yourself to dividends, but there are at least a few Canadian stocks you can hold virtually forever for their growth potential. The post TFSA Investors: 2 Winning Buy-and-Hold Forever Stocks in April 2024 appeared first on The Motley Fool Canada.Deposit in your local currency and easily trade stocks and options around the world with IBKR GlobalTrader. Your capital is at risk.

لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:

 /  🏆 47. in SA
 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين