How to play ETFs with the Fed cutting rates

The Federal Reserve is set to cut interest rates at its September meeting.

BlackRock Multi-Asset Strategies & Solutions (MASS) director and strategist Tushar Yadava says that equities traditionally benefit from Fed cuts. However, given October seasonality and election-related volatility, he says his firm is trimming some equity exposure because "that's a lot for a market to digest."

When it comes to how to play bonds in a portfolio, Yadava notes that "Bonds do benefit from rate cuts. You tend to see falling rates as good for bond prices," but that ultimately he thinks bonds should be used as a "ballast for your equity risk."

Watch the video above to hear Yadava discuss how central bank actions around the world are impacting the markets.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Stephanie Mikulich.