Forex stocks to trade at record highs this week
Traders have been trading at record levels of prices for the past few days, as investors look to see whether the Federal Reserve’s decision to raise interest rates could spur inflation.
The benchmark S&P 500 index has jumped 5% in the past two weeks.
The S&p 500 has increased 1,500 points this year.
Forex traders have also been betting the Fed will begin raising rates soon.
The Dow Jones industrial average is up 8.8% so far this year, with the Nasdaq up 13.1%.
“The Fed’s move has sent the market’s fundamentals soaring, making it a much more appealing asset class to buy and sell than it was a few weeks ago,” said Andrew Tiller, chief investment officer at First Point Asset Management in Chicago.
“If we don’t get a stimulus package this year then the market is going to fall.”
Fed Chair Janet Yellen will be attending the opening of the Fed’s annual meeting Tuesday.
She is scheduled to meet with President Trump and Treasury Secretary Steven Mnuchin.
The markets have rallied by more than 100% in recent weeks, and are now trading at nearly 3,000 times earnings.
For investors looking to take advantage of rising markets, forex markets have seen record-high yields this week.
The yield on the 10-year Treasury note rose to 2.65%, from 2.25% last week, according to data from the Commodity Futures Trading Commission.
“We’re now at the point where if the market does not rise and if the Fed is not raising rates then you are going to see this move, as we see it with the stock market and commodity futures,” said David A. Kocher, managing director at the financial consulting firm Cantor Fitzgerald.
“The market is being fed up.”
The rally has seen investors use ETFs to trade the forex market.
“It’s the only way to bet that the market will continue to rally,” said Koccher.
“I think we’re going to get the economy to full employment by the end of the year, and the Fed could be the catalyst for that.”
For now, there is some caution in forextradas market, with some investors holding out for the Fed to begin hiking rates.
The median price target for the S&ps 500 is $130.27, according an index tracker compiled by FactSet.
The Nasdaq is up 13% to 2,829.26, while the Dow Jones Industrial Average is up 5.7% to 18,828.93.
“A lot of people are going into it with a lot of optimism, and a lot more confidence that the Fed might be doing something,” said Scott Breslin, managing partner at Breskin Capital Advisors in New York.
“But I think the longer that the markets hold out, the more uncertainty you’re going for.”