Trade like Ben Bernanke
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Date updated:03-23-2009

On Wednesday March 18th, the Federal Open Market Committee chaired by Federal Reserve Chairmen Ben S. Bernanke, voted to keep its key-target interest rate at 0 percent, sparking a rally in stocks, a decline in the U.S dollar, yields on the 10-year bond to decline the most since 1962, and gold & oil all ended the day sharply higher.

Here is how you can trade like FED Chairman Ben S. Bernanke

symbol name last price % change open
  • +
  • GLD
    Spdr Gold Shares
  • $107.43
  • +0.42%
  • $107.38

6) Lower interest rates tend to induce inflation within an economic system which explains why the SPDR Gold Shares ETF (GLF) moved 4 percent higher on March 18th and is currently up an additional $43 dollars, and why the United States Oil ETF (USO) ended the day higher as well and is currently up an additional 5 percent as oil crosses the $50 per barrel mark---both oil and gold are seen as inflation hedges.

People owning GLD also tend to own: AAPLBABENBMYCOSTGOOGIAAC

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  • +
  • USO
    U.s. Oil Fund Et
  • $39.70
  • -2.70%
  • $39.90

6) Lower interest rates tend to induce inflation within an economic system which explains why the SPDR Gold Shares ETF (GLF) moved 4 percent higher on March 18th and is currently up an additional $43 dollars, and why the United States Oil ETF (USO) ended the day higher as well and is currently up an additional 5 percent as oil crosses the $50 per barrel mark---both oil and gold are seen as inflation hedges.

People owning USO also tend to own: AAADMCCRTCVXEWBCFMDMRO

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  • +
  • TLT
    Ishares Barclays
  • $93.33
  • +0.10%
  • $93.38

2) Lower interest rates have an inverse affect on bonds, which may make it cheaper for companies to issue longer-dated maturities. The Barclays iShares 20+ Year Treasury Bonds (TLT) gapped 6 percent higher as yields dropped, while the UltraShort 20+ Year Treasury ProShares (TBT) which is a 2x short ETF on the long-end of the curve fell north of 6 percent.

People owning TLT also tend to own: CVXPFEBTEIAUINTCIOOIVV

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  • +
  • TBT
    Proshares Trust
  • $47.69
  • -0.27%
  • $47.59

2) Lower interest rates have an inverse affect on bonds, which may make it cheaper for companies to issue longer-dated maturities. The Barclays iShares 20+ Year Treasury Bonds (TLT) gapped 6 percent higher as yields dropped, while the UltraShort 20+ Year Treasury ProShares (TBT) which is a 2x short ETF on the long-end of the curve fell north of 6 percent.

People owning TBT also tend to own: BTANLYPAASSSRITEVAADPBNA

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  • +
  • UDN
    Ps Db Usd Idx Br
  • $28.3181
  • +0.03%
  • $28.33

5) Lower interest rates weaken the U.S dollar versus other currencies, as virtually more dollars are being printed to meet current demand. The PowerShares US Dollar Bearish Index (UDN) ended the day mostly higher as the dollar fell to a two-month low, and the PowerShares US Dollar Bullish Index (UUP) fell notable as well.

People owning UDN also tend to own: DXDIBIIWMLEHOILPSTQID

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  • +
  • UUP
    Ps Db Usd Idx Bl
  • $22.83
  • -0.48%
  • $22.99

5) Lower interest rates weaken the U.S dollar versus other currencies, as virtually more dollars are being printed to meet current demand. The PowerShares US Dollar Bearish Index (UDN) ended the day mostly higher as the dollar fell to a two-month low, and the PowerShares US Dollar Bullish Index (UUP) fell notable as well.

People owning UUP also tend to own: DUKEDFSLRMROSUNTVZ

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  • +
  • GS
    Goldman Sachs Grp
  • $171.78
  • -0.93%
  • $171.96

No Analysis added

People owning GS also tend to own: AOBCOGOCRYPGELGLWGRMNMDRX

TheStreet.com Rating: C What is this?

  • +
  • WFC
    Wells Fargo & Co
  • $27.12
  • -0.62%
  • $26.72

4) Lower interest rates steepen the yield curve, which is the relationship between current rates and the 30-year bond, making banks like Wells Fargo (WFC), and Bank of America (BAC) more profitable.

People owning WFC also tend to own: ACEBACCCBCOPCVXDIS

TheStreet.com Rating: C What is this?

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A. dude, i trust DB, as much as i trust
nancy pelosi....................... that
bank is the BIGGEST F$$$$$ manipulator!

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