Captain Packrat (captpackrat) wrote,
Captain Packrat

  • Mood:

I call him Gamblor

The Fed meets again tomorrow afternoon.  The last time they met, everyone was expecting a 25 point rate cut.  When the Fed surprised Wall Street with a 50 point cut, the market went nuts.  This time around, again the consensus is for a 25 point cut.  I'm betting on more.

Last time around, I threw all of my available cash into the Nasdaq just prior to the announcement, which made me several thousand a few minutes later, but it is financials who stand to benefit the most from a Fed rate cut.  This time I've thrown my money into the ProShares Ultra Financials ETF (UYG).  It's a risky move (and it's already cost me $200), but if the Fed gives another 50 point cut, which some analysts think may happen, I could hit the jackpot.

Normally I'd stay waaaaaay away from the financial sector (I prefer tech, energy and materials), but this time is an exception.
Tags: stocks

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