Connect with us

Stocks

Can Stocks Compete with Rising Yields?

We’re going to discuss rising yields, the Federal Reserve and more. But before we dig into what we talked about in Monday’s and yesterday’s livestreams and Wednesday’s Strategic Trader weekly update, please note that In…

We’re going to discuss rising yields, the Federal Reserve and more. But before we dig into what we talked about in Monday’s and yesterday’s livestreams and Wednesday’s Strategic Trader weekly update, please note that InvestorPlace will be closed on Monday, Feb. 21 for President’s Day.

Source: Shutterstock

Advertisement

We’ve talked about it before in a few issues, but moving forward, we’d like to include details of our livestreams (Mondays and Thursdays at 7:00 p.m. EST) on a weekly basis.

So, from now on, each week, you can expect to hear about…

Advertisement
  • What we talked about on Monday…
  • What we talked about last night…
  • And a teaser of what we talked about during our exclusive Wednesday weekly update in our elite trading service, Strategic Trader.

Let’s dig in.

Monday: S&P 500 Price Target

Inflation fears sent stocks crashing last Friday, and the question is: Should you be worried, or is this just a technical bounce off resistance?

Let’s look at the current price target for the S&P 500 and find out which stocks to buy in February 2022 once the major indexes have found a bottom.

Advertisement

Wednesday’s Strategic Trader Weekly Update: Can Stocks Compete with Rising Yields?

Rising yields have been a concern for traders since the beginning of 2022 as Wall Street has wondered how quickly the Federal Reserve is going to raise interest rates to combat rising inflation.

This has caused traders to reduce their risk exposure to stocks, sending the S&P 500 lower, where it continues to consolidate between support at 4,300 and resistance at 4,600.

Advertisement

Now traders are wondering if the S&P 500 can remain in this volatile consolidation range; what if Treasury yields keep climbing?

Advertisement

To answer this question, we have to look at the investment options that are available to traders and see how they currently compare.

Traders are always searching for higher yields.

Advertisement

The baseline yields traders typically use when assessing their investment opportunities are Treasury yields — like the 10-year Treasury Yield — because they know that Treasuries provide a reliable yield, backed by the full faith and credit of the United States government.

Treasury yields fluctuate as inflation, monetary policy, and economic growth expectations change.

Advertisement

We also reviewed the wins our readers had the chance to take home over the last week:

  • 1.78% (26.89% annualized) on Take-Two Interactive (NASDAQ:TTWO) Calls in 27 days
  • 0.65% (15.91% annualized) on Southwest Airlines (NYSE:LUV) Calls in 16 days
  • And 1.97% (66.49% annualized) on Microsoft (NASDAQ:MSFT) Calls just two weeks.

Our combined average gain so far this year is 3.98% per trade, and we’ve closed 20 trades already this year, and our average annualized gain so far is an amazing 184.45%!

Click here to learn how to get the full update — and how you, too, can have the chance to see gains like the ones above.

Advertisement

Last Night: Stock to Buy if Russia Invades

With the S&P 500 dropping to its lowest level since its bounce in January, we’re waiting to see if its support level (the level that the index will drop to but not break below) will hold with tensions rising between Russia and Ukraine.

While we can’t predict what Russia is going to do, we do know some stock sectors are likely to outperform in the case of an invasion.

Advertisement

Click here to see which ones are on our watchlist.

We’ll be back with you next week.

Advertisement

More From InvestorPlace

  • Stock Prodigy Who Found NIO at $2… Says Buy THIS Now
  • Man Who Called Black Monday: “Prepare Now.”
  • Get in Now on Tiny $3 ‘Forever Battery’ Stock

The post Can Stocks Compete with Rising Yields? appeared first on InvestorPlace.

InvestorPlace | Stock Market News, Stock Advice & Trading Tips

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *