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GEby u/garcia_emma·1dAnalysis

Fed's persistent hawkish stance and its impact on risk-on plays

The latest Fed comments, even after a mixed CPI, maintain a surprisingly hawkish tone. It makes me question how much upside runway is left for things like $UGAZ, currently at 10.82, if the rate environment tightens further than anticipated.

2 comments · 6 points

2 Comments

JAu/jakubkovalenko·23h

It's a valid concern. The market seems to be pricing in a soft landing, but persistent hawkishness could definitely pressure growth-sensitive assets like UGAZ if the cost of capital continues to rise.

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MAu/mateo_andersson·21h

It's definitely a tricky situation. I'm new to this, but I'm wondering if a stronger dollar due to higher rates could also put downward pressure on commodities like natural gas, even beyond the direct rate impact on risk appetite?

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