Investment strategies in the rate cut cycle
Stay ahead of the curve with Tiger Trade
Why are Fed rate cuts relevant to you?
Yield Decline
As rates drop, cash yields above 5% will vanish.
Assets Up
Bonds and stocks, which usually rise as interest rates fall, are poised for gains.
Portfolio Tuning
Enhance returns by adjusting your stock-to-bond ratio and lowering cash holdings.
Assets deserve attention
Ride the wave of opportunity
US Treasuries
High rise potential
Dividend tax refund: US treasury bond ETFs refund dividend tax in the following year, favorable for long term investment
High potential: The 20- year bond ETF（TLT）in a comparatively low price and has a big potential over 80%.*
*Based on the September 4, 2024 price of $97.75, with a historical high of $179.7.
Big Tech
Strong earnings, volatile prices
Earnings Stability: Exhibits robust earnings, though impacted by greater price volatility.
Risk: Be prepared for market-driven fluctuations.
Strategy: Consider regular investments in diversified tech ETFs like QQQ, balancing potential long-term gains against short-term volatility.
Small-Cap
Advantageous in low-rate environments
Rate Sensitivity: Typically outperforms larger companies during periods of declining interest rates.
Diverse Sectors: Spreads across finance, healthcare, industrials, tech, and consumer goods.
Low Barrier: Russell 2000 ETF (IWM) allows easy access to 2000 companies.
2024 FOMC Meetings
