Do you guys remember me telling you during the first U.S. presidential debate that the Russell 2000 was going to rally? And about six months ago that tech, basic materials and industrial stocks like FCX would rally? 

Well, boy was I right! 

But if you’ve been paying any attention to my videos lately, then you know there’s a lot of inflation fear right now. 

That’s because inflationary pressure not only means prices of things go up, but that interest rates might also rise because that’s one way to combat inflation. 

And when there are fears of interest rates increasing, it impacts tech stocks most because they tend to give us the biggest risk vs. reward ratio in terms of stocks against bonds, which have a fixed return rate. 

When you buy a bond, you know exactly how much you’ll get back. 

So that’s why I want to show my readers the best way to trade inflation so we can take stock of what’s happening and plan our next move ahead. 

The Best Way to Trade Inflation

short GameStop for big profits Low-priced stocks to watch in 2021 software stocks setting up for big wins in 2021 small-cap stocks showing major upside gambling stocks to bet on in 2021 large-cap value stocks next-gen biometric stocks to watch growth stocks for 2021 short squeezing pot stocks tech stocks to watch in 2021 low-priced tech stocks 3D printing stocks for 2021 healthcare stocks to watch in 2021 small-cap stocks to watch in 2021 hidden gem small-cap stocks small-cap pot stocks to watch in 2021 Lucid Motors SPAC deal top tech stocks for 2021 VanEck Vectors Social Sentiment ETF semiconductor stocks to watch in 2021 profit from the stock market pullback back-to-normal stocks Goldman Sachs crypto trading desk back-to-normal stocks to watch in 2021 smaller growth stocks to target in 2021 profit from rising interest rates maximize your profits in 2021 Nike’s earnings report hotel stocks to target this spring GameStop’s earnings report stock market sector rotation strategies sector rotation strategy have pot and ev stocks fizzled out rotation into NFT stocks earnings reports to watch this week most shorted stocks the next GameStop Biden’s infrastructure plan benefits EVs the best EV charging stocks back-to-normalcy stocks infrastructure stocks headed for a big move best EV and chip stocks to watch U.S. economy beating Japan’s chip stocks to watch leisure airline stocks to watch REITs to watch closely consumer stocks set to jump rising firearm stocks big banks report earnings breakout stocks for 2021 solar stocks headed lower large-cap insurance stocks biggest stocks reporting earnings hidden gems in the tech sector low-risk industrial stocks Russell 2000 forecast new stocks to target financial REITs to own large-cap tech stocks breaking out favorite small-cap stocks bargain stocks under $10 low-risk trade opportunities top Russell 2000 stocks basic materials stocks ready to double restaurant stocks to watch this summer EV battery stocks for 2021 digital payment processor stocks to watch consumer stocks for summer restaurant stocks set to profit home builder plays bullish on oil stocks best basic materials stocks profit from rising inflation supply chain shortage stocks Industrial stocks set to rally top hedge fund stocks tech stocks bucking the trend rising commodity stocks to trade best utility stocks to trade stocks set to benefit from pent-up demand top flooring stocks to invest in travel stocks banking on pent-up demand best transportation stocks to invest in best way to trade inflationThe bond market has been moving sideways for quite some time now, and the Federal Reserve’s been telling us nonstop that this inflation is transitory and no big deal. 

Interest rates and bonds have an inverse relationship. So in theory, if the bond market goes lower, it means interest rates will rise. And if interest rates go up, it means technology stocks should break down. 

Anytime people fear that interest rates will rise, the first industry hit the hardest is usually large-cap tech. 

But Friday’s Employment Situation Summary hinted something else…

The report said nonfarm payroll employment rose by 559,000 in May — which is important because as soon as this number came out, the bond market broke to a one-month high. 

And the Technology Select Sector SPDR Fund (NYSEArca: XLK) did the exact same thing! 

So if bonds go up, interest rates go down. And if interest rates go down, that means there’s less pressure on technology… 

If what I’m about to say is true (and I tend to be right about these things), there’s a good chance the XLK might break out even higher… 

Which should cause the Nasdaq to go higher, too! 

So check out my short video below to learn what’s the best way to trade inflation, along with a few large-cap tech names to keep your eye on if the bond market does in fact rally. 

Don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video! 


P.S. Thanks to legendary trader Tom Busby finally breaking his silence, everyone now has the chance to grab winning trades and three-day weekends — every week! 

Tom discovered a way to tune out all of the noise in the stock market…

I’m talking about gains like 90% on RIOT… 147% on FCX… and even 232% on ORCL. 

It’s a little “Tuesday morning tip” that tells him exactly which trades Wall Street could be pushing higher. 

So in other words, it’s all of the stocks that could explode within the next 96 hours!

Click here to see how. 


What to Expect as FAANG Stocks Prepare to Report

What to Expect as FAANG Stocks Prepare to Report

The major indexes slumped as investors brace for a busy week of earnings and the Federal Reserve’s latest interest rate announcement — and more in Monday’s stock market recap. The Federal Open Market Committee meeting starts on Tuesday, with the Fed expected to...

read more