♟ Fed's Rate Cut: Why the Market Still Tanked

Learn why the 10-Year Treasury yield is the real story and how it affects your portfolio in 2025. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

View in browser "The Fed cut is noise. The 10-Year yield is the signal." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Look, everyone's talking about the Fed's 25-basis-point rate cut yesterday, but that's not the whole story. Not even close. The real action was in the 10-year Treasury yield, and boy, did that throw the market for a loop. The Basics of Bond Yields Here's the thing - when people talk about the 10-year rate, they're talking about what the government has to pay to borrow money for 10 years. Think of it like this: if you're lending money to your most reliable friend (in this case, Uncle Sam), what return would you want on your money? Let me break this down with real numbers, because this is important. Right now, that 10-year yield is sitting north of 4.5%. That means if you put $100,000 into these bonds, you're guaranteed to get more than $4,500 a year. Guaranteed. No wondering if some CEO is going to blow up your investment, no worrying about earnings reports, none of that stuff. Now, when that number moves even higher - and believe me, it can - it's like a wrecking ball through the stock market. Think about it. If you're running a big pension fund or managing billions of dollars, why would you mess around with risky stocks when you can get nearly 5% guaranteed from the government? And here's what's really wild - we haven't seen yields this high in years. When I tell younger people that back in the '80s, these yields were in the teens, they look at me like I'm speaking Chinese. But that's exactly why these current levels are shaking up the market so much. Man Who Called Nvidia at $1.10: THIS NEW STOCK is the Next Trillion Dollar Company Biggest Tech Firms in the World are Loading Up! And Apple Just Signed a Deal Through 2040. Get the Whole Story Here. After years of near-zero rates, suddenly Uncle Sam is paying real money again. Why Yesterday's Move Matters Listen, I've been in this game for decades, and here's what really matters: While the Fed is playing around with short-term rates, the 10-year yield is the real boss of the market. It's like the market's thermometer - it tells us how hot or cold things really are. When this yield moves higher, it's telling us something important. Maybe inflation isn't as dead as everyone thinks, or maybe the economy is stronger than we expected. Either way, the market pays attention. The Market's Reality Check You want to know why stocks sold off? Simple math. When the 10-year yield goes up, it makes everything else more expensive. Want a mortgage? That'll cost you more. Want to buy stocks? Well, now you're competing with higher "risk-free" returns from bonds. Think about it - if you can get a decent return just lending to the government, why would you take bigger risks in the stock market? That's exactly what happened yesterday. What This Means for Your Money Here's where the rubber meets the road. The Fed can cut rates all they want, but if the 10-year yield keeps climbing, we're going to see some serious portfolio shuffling. Growth stocks, especially tech stocks that promise profits way out in the future? They get hit the hardest. YOUR ACTION PLAN So what do you do? First, don't panic. This is exactly why we always talk about diversification in The War Room. But more importantly, this is creating some incredible opportunities if you know where to look. Keep some powder dry - higher yields mean better entry points are coming Watch the banking sector - they actually benefit from higher long-term rates Consider adding some high quality dividend stocks to your portfolio - they tend to weather these storms better Remember, in The War Room, we don't just react to news - we position ourselves ahead of time. That's how we've been able to rack up consistent gains even in choppy markets like these. Want to learn how we're positioning for what's next? Click here to join us in The War Room. INSIGHTS YOU MAY HAVE MISSED The New "Bro Economy" and How to Trade it Play AI With One Simple Trade Why 2025 Will Be the "Year of Energy" The Ultimate Trump Trade? Claim Your FREE AI Income Playbook (Seriously, put your wallet away!) CLICK HERE Follow Us on Instagram! FACEBOOK YOUTUBE   Monument Traders Alliance, LLC   You are receiving this email because you subscribed to Trade of the Day. To unsubscribe from Trade of the Day, click here. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. Forgot your password? Click here to reset it. To cancel by mail or for any other subscription issues, write us at: Trade of the Day | 14 West Mount Vernon Place | Baltimore, MD 21201 North America: 1.800.507.1399 | International: +1.443.353.4977 Website | Privacy Policy Keep the emails you value from falling into your spam folder. Whitelist Trade of the Day. © 2024 Monument Traders Alliance, LLC | All Rights Reserved Nothing published by Monument Traders Alliance should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by Monument Traders Alliance should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Monument Traders Alliance, LLC, 14 West Mount Vernon Place, Baltimore, MD 21201.