Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Editor's Note: And Now, the Fed Shockwaves Begin: Join Us LIVE This Wednesday to Turn October Volatility Into Overnight Profits The Fed Shockwave LIVE Summit: (Wednesday, September 24 at 2 p.m. ET) – I'll reveal why the Fed announcement will cause a volatility shockwave for the next three months... and how to turn that volatility into the BIGGEST gains of the year! Reserve your spot here >>> RSVP HERE
Dear Reader, Starting right now... ....and extending through the end of the calendar year... Your trading should be laser-focused on those companies that stand to benefit from the beginning stages of a rate-cutting cycle. Right off the bat, we already know that the small cap sector stands to benefit. After all, small-cap companies benefit from rate cuts because they have a much higher reliance on external financing (such as floating-rate debt), which makes them far more sensitive to lower interest costs. A small company needs to make every dollar count - squeezing as much out of every cent possible to grow their business. So, reduced borrowing expenses can dramatically improve their financial conditions - which gives them increased capital for growth. Historically speaking, small-cap stocks tend to outperform large-cap stocks in rate-cutting environments - especially in the months following the initial Fed rate cut (which just occurred last week). With that in mind... |
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