When the Fed raises rates, Wall Street investors will get to keep their money
Forex traders have a lot to be happy about.
They’ve seen interest rates rise in the past few months, and investors will see a rate increase come January, with traders getting a break from the volatility they face in the currency markets.
But they may also get to put their money in stocks, which is a lot less risky than in the future.
Forex analysts and traders at Forex Trader say that the Fed is going to raise rates, but that it may not be a hike as much as it seems.
As we have previously discussed, it is not a hike but a rate cut that could bring in more money into the market and provide investors with a bigger break.
For the moment, Forex prices are trading at the low-end of expectations, with a return of around 2% a day.
However, the Fed has said that it will not raise rates for another year, and a number of analysts have said that they think that they could have a rate hike in January.
But traders and analysts say that it would be nice if the Fed does raise rates in January, because it would allow them to make some gains.
“A 1.5% rate hike would allow us to put more money in the market, which would help us recover from the current bear market in equities and the near-term dollar weakness,” Jeff Weltman, head of Forex at S&P Dow Jones Indices, told Bloomberg.
“A 1% rate rise would also give us more room to sell at the higher prices we’re looking for.”
“The market is a little too volatile to expect a big rate increase this year, but the risk of an increase this month is low and could be a nice break for traders who want to cash in before the end of the year,” Kathleen Hannon, head market strategist at TD Ameritrade, told Reuters.
If the Fed doesn’t raise rates by the end on January 15, we could see more volatility in the markets and forex trading could become even more volatile.
The Fed has been working on rate hikes in the near term, with the Fed chair Janet Yellen stating that rates could be raised by mid-January.
Analysts at Sysco said that the rate hike is not imminent, and the Fed’s statement is not that surprising, as the Fed said that rates would be increased in January but that the timing and scope of the increase would be decided by the Committee on Governors.
With a 2% rate increase, Forextra estimates that the markets could end the year at $1.4 trillion, with an average return of 8% a year.
It is worth noting that there are a number stocks that could benefit from the Fed raising rates.
Venezuela, for example, is in a recession, and it could benefit if the economy improves.
And there are companies that could get a boost from a rate rise.
Shares of a company like General Electric, for instance, could benefit because the company is a big exporter of steel and electrical equipment.
There are also companies that might benefit from a change in the interest rate environment, like Microsoft, which might see a hike because of its current high debt load.
Investors could also benefit if there is a new regulation that would benefit companies.
In this case, that would be the Fed adopting a “tapering” plan that would help companies like General Motors, which have been struggling with rising fuel prices.
Companies like Microsoft and General Electric could benefit as well.
Some traders think that the recent decline in interest rates could benefit some stocks.
John O’Connor, chief market strategist for Capital Economics, told CNBC that the “lower rates could have been an upside and that it could have led to a bigger dividend.”
The US stock market is currently trading at around a record high, with futures for the Dow Jones Industrial Average and the S&s futures index at their highest levels since June of 2016.
“This rally is a sign that the market is getting a little bit more settled than we would like,” Markets analyst John Mancini told Bloomberg, adding that the lower interest rates may also be contributing to the current selloff in equestocks.
On the other hand, many analysts believe that the selloff will continue until the Fed moves on to other measures to help stabilize the markets.
Read more about the economy and the world of finance at WSJ.