MDM has switched to a BUY signal.
Interest rates on the long end of the curve are likely to roll back over with Fed Chair Powell saying there would be no rate increases or tapering of asset purchases until at least 2024. Powell always puts the punch bowl back with even more punch than before. Two new stimulus packages with one being the proposed new additional stimulus in the form of Biden’s multi-trillion dollar infrastructure spending package makes for quite an avalanche of QE. Bond yields on the longer end of the curve and the dollar will likely roll over in the coming days to weeks.
Fed Chair Powell will likely use the capital to prevent any major correction in the stock market by buying up bonds. Accelerating inflation is also more and more likely thus the dollar's strength should temper.
Ultimately, if history is any guide, yields are likely to go even more negative in some parts of the world, and eventually negative for the first time in the U.S. Massive debt begets more debt which begets lower rates despite the recent jump on the long end of the curve.
Over in the EU, the yield on the German 10yr Bund plunged after the European Central Bank unleashed a flurry of buying.
Suggested ETFs (Note: Many members buy the standard ETFs or their preferred ETFs. This list serves as a guide as to which ETFs we think may outperform, but the key point is to be on the right side of the market regardless of which ETF or ETFs one chooses.)
"Stuff" stocks, ie, commodity-related plays should continue to do well, thus the S&P500 and its related ETFs should continue to show strength. That said, techcentric NASDAQ Composite and TECL often lead with outperformance on a percentage basis under more normal conditions.1-times
SPY (S&P 500)
QQQ (NASDAQ-100)
2-times
SSO (S&P 500)
QLD (NASDAQ-100)
3-times
UPRO (S&P 500)
TQQQ (NASDAQ-100)
TECL (Direxion Trust Technology)
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.