TLT LONG

TLT could be an attractive investment if the Fed cuts rates for numerous reasons.

Price Appreciation: When interest rates decline, the price of existing long term bonds held by TLT tend rise. The fixed interest payments of these bonds become more attractive compared to new bonds issued at lower rates .

Lower Yield Environment: As interest rates fall, the yield on newly issued bonds decreases. Investors seeking higher yields may shift their investments to longer duration bonds like those in TLT, which typically offers higher yields than short term bonds.

Stable Income: TLT provides regular interest income through its holdings. In a lower interest environment, the relative stability and predictability of this income can be appealing.

Lastly, TLT has broken out of what I believe to be an inverted H&S pattern. This is a sign of a potential reversal. I am expecting a big move to the upside from this stock due to the current economic environment around the Fed cutting rates.