How to Trade Federal Reserve Uncertainty
Ryan, one final question before you take off. Given the US Federal Reserve's higher for longer stance on interest rates, how have the daily 20-year Treasury bear 3X shares, ticker TMV, and the bull 3x shares, ticker TMF, reacted? How are traders using them to capitalize on all this?
TMF and TMV always see, as I'm sure you could guess, increased attention around anytime the Federal Reserve is making an announcement. Anytime you see Jerome Powell out there talking, those two funds are inevitably seeing an increase in volume. It's great that we offer both sides of the trade there because there's so much uncertainty as far as the Fed's path forward.
I mean, if you heard Powell's comments after the last rate cut that was essentially fully priced into the market, December's cut seems a little bit in question now. Much of this is driven by the lack of data as a result of the government shutdown.
As a result of that, that uncertainty tends to lead to volatility. If you're a trader looking to capitalize on this volatility, TMF and TMV offer you great tools.
