SHAG Forecast


Bullish Case: SHAG's recent upward trend suggests improving bond market sentiments. If yields decline as anticipated, SHAG could see significant price appreciation, leveraging its historical positive returns over 1-2 years.


Bearish Case: Persistently high inflation could keep yields elevated, pressuring bond prices. If economic shocks occur or negative market trends resume, SHAG is likely to stagnate or decline further, as indicated in historical returns.


Potential Outcomes:

1. Low-yield environment (40% chance) leads to price recovery.

2. Continued inflation (20%) pressures SHAG, reducing prices.

3. Economic downturn (10%) triggers sell-offs.

4. Modest recovery due to rate cuts (30%).


Trading Oracle: Given current trends, consider implementing a bullish debit spread on SHAG, targeting recovery within 6 months. Focus on short-term options to leverage potential volatility. This strategy aligns with the predicted low downside risk while maximizing upside potential.


July 24, 2024


WisdomTree Trust - WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Forecast

SHAG      WisdomTree Trust - WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond











Correlated Assets

Assets that tend to move strongly with SHAG



BND Forecast + Options Trading Strategies   BND  Vanguard Total Bond Market (0.94)


VCLT Forecast + Options Trading Strategies   VCLT  Vanguard Long-Term Corporate Bond (0.92)


XLRE Forecast + Options Trading Strategies   XLRE  Real Estate Select Sector SPDR (0.91)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.88)


BLK Forecast + Options Trading Strategies   BLK  Blackrock (0.88)



Uncorrelated Assets

Assets with little price relationship to SHAG



NOC Forecast + Options Trading Strategies   NOC  Northrop Grumman (0.0)


HE Forecast + Options Trading Strategies   HE  Hawaiian Electric Industries (-0.0)


FDX Forecast + Options Trading Strategies   FDX  Fedex (0.0)


W Forecast + Options Trading Strategies   W  Wayfair (-0.0)


KNSL Forecast + Options Trading Strategies   KNSL  Kinsale (0.0)



Anticorrelated Assets

Assets that tend to move strongly against SHAG



TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.79)


SARK Forecast + Options Trading Strategies   SARK  Tuttle Capital Short Innovation (-0.85)


TMV Forecast + Options Trading Strategies   TMV  Direxion Daily 20+ Year Treasury Bear 3X Shares (-0.86)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.92)


REK Forecast + Options Trading Strategies   REK  ProShares Short Real Estate (-0.93)





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