TRUMP WINS! RATES HIGHER!
Leader Capital believes rates will continue moving higher
New Bull Market Has Begun
New Bull Market Has Begun
As Donald Trump has won the election, rates have moved aggressively higher. We believe that rates will continue moving higher and that a Fed raise in December is 90% certain. We project that Fed Funds and LIBOR will hit 2%, the 10 year treasury will hit 3%, and the 30 year treasury will hit 4% by the end of 2017.
The markets have been in a bear market since June 2015. Bear markets have averaged 14-18 months in duration since 1950. We believe a new bull market has begun. The inflation story is still intact, meaning the potential for stronger commodities. Leader portfolios are currently well positioned for the current market environment with ~20% in cash to take advantage of opportunities that arise, low interest rate sensitivity (1.2yrs duration), high quality floating rate paper (35% allocation to floating rate paper), and commodities.
S&P 500: The S&P 500, or just "the S&P" is an American stock market index based on the market capitalizations of 500 large companies.
LIBOR: LIBOR is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. LIBOR stands for London Interbank Offered Rate. LIBOR serves several different maturities: overnight, one week, and 1, 2, 3, 6, and 12 months.
It is not possible to invest directly in an index.
Past performance is not a guide to future performance. The information in this article does not qualify as an investment recommendation.
Risks: Investments in debt securities typically decrease in value when interest rates rise. The risk is actually greater for longer-term debt securities. Investment by the fund in lower-rated and nonrated securities presents a greater risk of loss of principle and interest than higher-rated securities. The fund is exposed to credit risk where lower-rated securities have a higher risk of defaulting on obligations. Investments in foreign securities involve greater volatility and political, economic and currency risks. They may also have different accounting methods. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
Investors should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. The Prospectus contains this and other important information about the Fund. For a current Prospectus, call 800-269-8810 or go to www.leadercapital.com Please read carefully before investing. The Funds are distributed by Foreside Distribution Services, LP.