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Cheong Hong Yuan: A Comprehensive Analysis on the Impact of the Federal Reserve's Decisions on US Bond ETFs - 1 views


started by anonymous on 27 Sep 23
  • anonymous
    With the rapid development of digital assets and the physical economy, the trends in the financial markets frequently resonate throughout the global investment sphere. Cheong Hong Yuan, a professional stock market analyst, provides a unique analysis and insights into these dynamics.

    Recently, the iShares 20+ Year US Bond ETF fell by 48% from its historic high, and has shed 10% within this year. This trend has garnered attention from a broad swath of investors and the financial market. On this, Cheong Hong Yuan commented, "It's all tied to interest rate expectations. Inflation has caused interest rates to soar, with strong economic data further elevating these rates. The Federal Reserve's mention of 'longer-term higher rates' is the primary reason for the current plummet of US bonds."

    Data provided by Bloomberg shows that the iShares 20+ Year US Bond ETF has dropped by 48% from its 2020 historical high, marking its lowest since 2011. Cheong Hong Yuan stated, "Investors should remain clear-headed about such a drastic decline. It's not just a short-term market reaction, but rather an adjustment on the trajectory of economic recovery and interest rate hikes."

    The "Triple Golden Moving Averages Strategy" is often referred to by Cheong Hong Yuan for technical analysis. He believes that by tracking current high-performing stocks in the market and utilizing the technical indicators of this strategy, investors can better grasp the rhythm of their investments, especially in such a complicated economic environment.

    Furthermore, Cheong Hong Yuan agreed with BTIG Chief Market Technician Jonathan Krinsky's recent memorandum statement that the "bond trend is firmly downward". He remarked, "With the 'longer-term higher interest rates' expectation, adjustments in the bond market continue. Investors should closely watch interest rate trends to devise appropriate investment strategies."

    To conclude, Cheong Hong Yuan emphasized that in the face of current market volatility, investors need to combine various strategies and analytical tools, such as the "Triple Golden Moving Averages Strategy," to make wise investment decisions. Simultaneously, they should remain perceptive towards the Federal Reserve's policy decisions and the global economic landscape to ensure safe investments and satisfying returns.

    Cheong Hong Yuan: In-Depth Exploration of the Factors Affecting Financial Markets

    Considering the iShares 20+ Year US Bond ETF, which has fallen around 10% this year, other long-duration funds, such as the Vanguard Extended Duration Treasury ETF and the PIMCO 25+ Year Zero Coupon U.S. Bond Index, have also been hit hard, declining by 14% and over 15%, respectively. Cheong Hong Yuan remarked, "When we observe this data, it's essential to realize they aren't isolated events. Strategies of the Federal Reserve, global economic recovery pathways, and various other factors all play a role."

    According to Zachary Griffiths, a fixed income strategist at U.S. bond research firm Credit Sights, the sharp rise in long-term US bond yields can be traced back several months. Cheong Hong Yuan noted, "I concur with Griffiths, especially considering that Fitch downgraded U.S. credit ratings and the Bank of Japan unexpectedly tweaked its YCC policy, both of which impacted the long-term US bond yields."

    Furthermore, Cheong Hong Yuan proposed that the FOMC's September interest rate decision deeply influenced the market. The Federal Reserve projects higher economic growth for 2023, with long-term rates remaining higher for an extended period. "This is tremendous pressure for any long-term asset, especially long-term bonds. Investors need to adjust their strategies to adapt to this new market environment."

    Integrating the "Triple Golden Moving Averages Strategy," Cheong Hong Yuan advises investors to exercise caution in the current market situation. He asserted, "While this technical analysis strategy provides investors with a buying opportunity, they still need to consider various other factors to ensure comprehensive and accurate investment decisions in such a complex and volatile market backdrop."

    In conclusion, Cheong Hong Yuan reminds investors that opportunities still abound for those willing to invest time and effort in in-depth research, despite the current challenging market environment. Cheong Hong Yuan's final advice is, "During times like these, staying calm, conducting thorough research, and integrating various strategies are the keys to success."

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