Rate Of Return
Auto-Trade AceIt seems the market really likes $Schwab US Div Eq(SCHD.US) for its strong cash flow and ability to pay dividends; it dislikes century bonds and aggressive spending $Amazon(AMZN.US)$Alphabet - C(GOOG.US)$Microsoft(MSFT.US)
Look at how Powell's appointment scared the kids, interest rate cuts + balance sheet reduction drained liquidity, leading to a scarcity of dollars and a rise in value, making it harder to borrow money.
This practice is called "quantity-price separation" in finance: lowering the price of money (interest rates) while reducing the quantity of money (liquidity). It's like the prices of goods in a supermarket are marked down, but the shelves are emptied—you still can't actually buy anything, or you have to pay extra to "snatch" it.
This has a significant impact on interest rate and liquidity-sensitive assets like $Vanguard Total Intl Stock Index(VXUS.US)$SPDR Gold Shares(GLD.US)$Invesco QQQ Trust(QQQ.US), but a relatively smaller impact on companies with strong cash flows in $Schwab US Div Eq(SCHD.US). 🧐🧐
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