BlackRock, the world’s largest asset manager, likes investment-grade credit better than equities as it sees “a new market regime with higher volatility taking shape,” according to a Monday note from strategists at the institute. investment of the firm. Investment-grade credit may “endure a significant slowdown in growth, while equities do not appear priced for this … Read more
Instead, concern focused on what a dizzying job market and rising costs mean for stock and bond portfolios, particularly if it turns into a combination of higher growth and inflation with staying power. How to call such a scenario? “Boomflation,” said Kent Engelke, chief economic strategist at Capitol Securities Management, pointing to annual wage gains … Read more
Between pandemic lockdowns, health issues, controversial politics, and significant inflation with rising prices, many US investors may feel like they are losing control of their situations. Add to that a bear market for stocks, with a possible recession looming. To maintain resilience, we can focus on taking care of our physical, mental, and financial well-being … Read more
It’s work Friday. The release of the monthly US Non-Farm Payrolls report is always a highlight for Wall Street, particularly in an uncertain monetary policy environment when traders are hypersensitive to factors affecting the Fed’s thinking. In fact, the resilience of the labor market is causing many market watchers to say that, despite suffering two … Read more
The S&P 500 Index may be about to lock in two major SPX bulls, -0.04% milestones. First, the S&P has rallied from that mid-June low to major resistance at 4170. A two-day close above that level would be quite bullish and set the stage for a challenge to the downtrend line that defines this market. … Read more
Every time the Federal Reserve starts to tighten financial conditions, markets try to guess how far the central bank will go. Indeed, now in an era where it provides its estimates of future policy in a framework known as “the dots,” the Fed itself is providing guidance on where the fed funds rate will land. … Read more
Now that the Federal Reserve appears to have abandoned your forward facing tool In favor of being “data dependent” to help inform their future path for rates, investors should keep an eye on this gauge of inflation expectations for signs of a change in market sentiment. Look at the five-year breakeven rate of inflation, one … Read more
Savvy financial market inflation traders expect a run of headline US consumer price readings of roughly 8.8% annually over the next three months, beginning with the release of July data on August 10. While such readings would be down from June’s 9.1% reading and support the theory that inflation may have hit a nearly 41-year … Read more