Okay, Uncle Sam…
But back to reality. We have been in a historically low-interest rate environment over the last ten years or so with interest rates currently hovering around an all time low. While the Federal Reverse just raised their overnight interest rates by 25 basis points, we still have barely moved the needle towards normalizing rates.
If the Fed is going to continue somehow to raise interest rates without the market crashing, it is likely we will see and overall rise in not just short-term interest rates (like the Fed funds rate) but also in long-term interest rates (30-year bonds, mortgage rates, etc.).
The best way to get exposure to the longer-term interest rates would be trading TLT, the iShares 20+ Year Treasury Bond ETF. And as always, if TLT options are better than TLT stock, we will be trading options folks.