More Fed Cuts Coming (Rates down, prices up)

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In this episode, I'll talk about the recent rate cuts by the Federal Reserve and what they imply for bond investors. With rates trending down, bonds may be set to restore their supporting role in portfolios. Could this be a special opportunity to benefit from bond market growth?

Likewise in this episode:
Insights from fund supervisor Mike Dragosits on bond market trends and the Fed's method.

Why a well balanced bond strategy with diverse exposures can catch prospective income and growth.

How inflation surprises or economic shifts might still impact bonds in a rate-cutting environment.

A summary of the Harvest Premium Yield Treasury ETF (HPYT) and its method to high-quality, income-focused bond investing.

How HPYT's covered call strategy enhances earnings, even during market volatility.

See Harvest ETFs

HYLD:

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More Fed Cuts Coming (Rates down, prices up)

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About the Author: Richard Money

17 Comments

    1. I think Daddy Beavis might have to google what that means as do I. Now that I know it’s teen slang for a cool dude, I agree. 😂

    1. The more CAD drops the higher VFV goes. It doesn’t affect those of us who are no longer investing in canada.

      The CAD is weak and will get weaker mostly because of weak government policy, canada is not interested in building wealth or creating prosperity. The government in canada is interested is ESG, DEI, trans issues, affirmative action, policing speech etc. They are being open and honest about it and they have achieved their goals. Their goals are not create wealth for their citizens and so can we really be upset? They have not failed in their goals.

  1. Thank you for the video, Marc. I took a position in HPYT earlier this year, in anticipation of these interest rate cuts and to diversify. All said, I still don’t understand why the unit price has declined as it has. (I’ve been dripping it to DCA and am still down 10%.) Hopefully it reverses course.

    1. This ETF mostly holds other ETFs that invest in long-term US government Treasuries. These are highly sensitive to movements in interest rate. Since long-term rates have risen during this time HPYT has dropped in value. This is called duration risk, which is one of the perils of investing in long dated bonds.

  2. Thank you Marc. I enjoy the Harvest videos and have gone pretty heavy into HTA and would like to see you chat with one of the reps about that. Appreciate your work.

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