Here's Why the Russell Index Is the Place to Invest if Interest Rates Fall

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With the growing possibility that the Federal Reserve will announced it is cutting interest rates at its Wednesday, Oct. 30 meeting, there is a smart way to play a decline in rates, according to Bob Iaccino, chief marketing strategist at Path Trading Partners. 

"One of the things I would really look at is CME products that relate to the Russell, if a rate cut were to happen, simply because the Russell is filled with companies that are of a smaller market cap and they tend to use the banking system more for things like lines of credit and business loans where if their rates went to zero or negative, their profitability would kind of soar," Iaccino said. 

Iaccino was part of the TheStreet's CME Webinar -- How to Trade the Fed, Trade Wars, Brexit, Oil and Gold Using Futures -- and the experts can help you beat market volatility by using futures and options as part of your trading strategy.

The panel:

  • Bluford Putnam, chief economist of the CME Group, is responsible for leading local economic analysis and monitoring developments and the price patterns, volatility and correlations of futures and options markets.
  • Carley Garner, futures and options broker with DeCarley Trading, is the author of the book "Higher Probability Commodity Trading."
  • Bob Iaccino, the chief market strategist of Path Trading Partners, who has spent the last 22 years in the commodities, futures and forex markets.

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