The Fed's Next Move: Why Traders Are Piling Into This 3X Financial Bull Fund
2026-02-18 14:23:00 ET
Many short-term traders focus on the Federal Reserve's interest rate decisions. If the Fed cuts its benchmark rates, bond yields will fall, the financial conditions will ease, and more investors will take on debt and rotate back toward riskier investments. Those conditions could broadly lift the financial sector , which thrives on increased investments, trading, and loans.
If you expect Kevin Warsh, the Trump Administration's nominee for the next Fed chair, to aggressively cut rates upon succeeding Jerome Powell this May, then it might be a good time to get bullish on financial stocks. Let's take a look at a popular ETF that aims to triple daily returns in the financial sector -- and whether it's a safe long-term play on lower interest rates.
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NASDAQ: FAS
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