History Shows Rapid Fed Rate Hikes Often Lead to Recession, Creating Opportunity for Agency MBS
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Interest rates and economic cycles tend to repeat, so we can look to history for guidance.
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The Fed has hiked rates quickly, often leading to recession and rapid rate cuts.
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Agency MBS offer yields similar to Treasuries but more upside if rates fall.
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AGNC leverages agency MBS and would benefit from recession and rate cuts.
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Understanding fundamentals like rates is key, don't just look at charts.