Investors on Friday got a taste of the sort of market shock that could come if Russia invades Ukraine. The spark came as Jake Sullivan, the White House national security adviser, warned Friday afterno...
Tag: Debt/Bond Markets
Why hedge-fund manager Doug Kass says his bearish case is now stronger and dip buyers should bide their time
For equity dip buyers still waiting in the wings, hedge-fund manager Doug Kass suggests holding fire for now as better bargains, and unfortunately worse times, are ahead. “It is my view that the odds ...
‘If you’re a wage earner you’re going to fall behind’: Ex-Fed insider warns of ‘difficult few years’ due to inflation
Former Federal Reserve insider Thomas Hoenig thinks the U.S. faces a painful reckoning because of high inflation. Hoenig was a lone dissenter eight times in 2010, when the Fed voted to pursue a then-n...
Buy the dip? Why the stock market’s bounce off January lows may prove premature
A big stock-market bounce after an ugly January might reflect misplaced confidence in a previously tried-and-true trading strategy, a Wall Street analyst warned on Monday. “After a tough markdown of s...
Investors Flock to Savings Bonds for Protection Against Inflation
As inflation rises, another low-risk investment is getting more attention: the tried-and-true Series I savings bond known as inflation or I bonds. These federally guaranteed instruments currently hav...
Treasury Inflation-Protected Securities: What Investors Should Know About TIPS
TIPS have suddenly moved to center stage for investors, as the surge in inflation has drawn new interest in Treasury inflation-protected securities. But how much do investors really know about these s...
The next ‘pain trade’ could be on the horizon as investors crowd into bets pegged to Fed monetary policy
Investors may be set up for the next so-called “pain” trade, with market participants increasingly coalescing around expectations that Federal Reserve needs to act aggressively to combat persistent U....
‘This is not 1980’: What investors are watching as next U.S. inflation reading looms
Investors next week will be closely watching for the latest reading on U.S. inflation, which has been running hot against the backdrop of a volatile stock market in 2022. “Inflation will be the data p...
Bears beware. Past corrections for the S&P 500 are only 15% on average, outside of recessions
Even after a rough January for Wall Street, it might take the U.S. economy slipping into a recession before the S&P 500 index risks entering a bear market, according to Oxford Economics. “Equities...
Major Investors Hold Ground on Russian Debt Amid Ukraine Crisis
Tensions over a potential Russian invasion of Ukraine have put international investors on edge. But some are holding on to Russian debt, betting that a diplomatic solution to the crisis could spark a ...
When to stop investing in the stock market? Wild price swings are shaking the resolve of some: Is it time to bail out of equities and bonds?
Is it time to bail out of stocks and bonds? This isn’t the market that investors likely signed up for back in 2021 when shares in GameStop Corp. GME, +4.69% and movie chain AMC Entertainment Holdings ...
What to expect from markets in the next six weeks, before the Federal Reserve revamps its easy-money stance
Federal Reserve Chairman Jerome Powell fired a warning shot across Wall Street last week, telling investors the time has come for financial markets to stand on their own feet, while he works to tame i...
Here are the odds you’ll outlive your money
What year was the worst possible time in U.S. history to retire, from an investment point of view? To put this question another way: What year’s U.S. retirees had the greatest difficulty sustaining th...
Fed will raise its policy interest rate above the inflation rate ‘sooner rather than later,’ says ex-governor Quarles who resigned last month
Former Federal Reserve Governor Randal Quarles said Tuesday that he thinks the Fed will move swiftly to raise its policy interest rate above the inflation rate because that is the only way to defeat i...
Opinion: Thankfully, the Fed has decided to stop digging, but it has a lot of work to do before it gets us out of hole we’re in
NEW HAVEN, Conn. (Project Syndicate)—The Federal Reserve has turned on a dime, an uncharacteristic about-face for an institution long noted for slow and deliberate shifts in monetary policy. While the...
Opinion: Retirees in the U.S. do not live on ‘fixed incomes’
As inflation has gained traction in the last year, commentators constantly remark about how it is particularly hard on retirees who live on a “fixed income.” Please stop. Retirees do not live on fixe...
Is the market crashing? No. Here’s what’s happening to stocks, bonds as the Fed aims to end the days of easy money, analysts say
As the stock market has convulsed lower and yields for bonds have surged in recent weeks, culminating in a so-called correction for the Nasdaq Composite Index, average Americans are wondering what’s a...
How a Russian invasion of Ukraine could trigger market shock waves
The threat of a devastating European ground war hasn’t done much to rattle financial markets so far, but investors still appear likely to snap up traditional safe-haven assets should Russia attack Ukr...
As stock-market turbulence revs up, this ETF theme has drawn 32% of flows in 2022 so far: ‘This isn’t a flash in the pan’
Thank god its Thursday! The Nasdaq Composite posted its first correction since March and equity benchmarks were trying to stage a mini rally, at last check on Thursday. Is this the beginning of the en...
When no stock-market lead is safe, here’s what history shows the Nasdaq’s near-term returns look like (it’s not pretty)
Rallies are getting squashed and no lead appears to be safe for the stock market in recent trade. In fact, the Nasdaq Composite COMP, -1.30%’s intraday reversal on Thursday — when it was up 2.1% at it...
The Nasdaq Composite just logged its 66th correction since 1971—here’s what history says happens next in the stock market
The Nasdaq Composite Index COMP, -1.15% on Wednesday booked its first close in correction territory since March with a rapid surge in Treasury yields, and expectations for interest-rate increases from...
The 60/40 portfolio ‘is in danger’ as Federal Reserve gears up for a rate-hike cycle in coming months
The traditional portfolio mix of 60% stocks and 40% bonds, historically seen as the safest allocation for investors of moderate-risk tolerance, “is in danger” as the Federal Reserve gears up for its f...
Here’s what history says about the Nasdaq Composite’s near-term returns after closing below its 200-day moving average
The Nasdaq Composite Index notched its first close below a closely watched, long-term trend line since April of 2020, and investors may be wondering how the benchmark tends to perform in the near to i...
Brace for a volatile 2022, but cling to this tech stalwart when the storm comes, says investment adviser
The pain is piling up for equity investors after the long U.S. holiday weekend, with bond yields at levels not seen since early 2020, and oil prices tapping 2014 highs. The pace of Federal Reserve mon...
Is the stock market open today? Here are the trading hours on Martin Luther King Jr. Day
Stock and bond markets in the U.S. will be closed Monday, January 17 in observance of Martin Luther King, Jr. Day, offering traders a rest after a volatile start to the year. The Securities Industry a...
Fed needs to ‘shock and awe’ the market with one big rate hike, Bill Ackman says
Billionaire hedge-fund manager Bill Ackman said the Federal Reserve needs to deliver old-fashioned “shock and awe” to financial markets by delivering a much larger onetime increase to benchmark intere...
Roaring U.S. housing market may cool, keep climbing as Fed ends emergency support
U.S. home prices roared almost 20% higher in the past year, giving families who own properties a major boost to their finances during the pandemic. But Wall Street, a key source of home mortgage finan...
Get ready for the climb. Here’s what history says about stock-market returns during Fed rate-hike cycles.
Bond yields are rising again so far in 2022. The U.S. stock market seems vulnerable to a bona fide correction. But what can you really tell from a mere two weeks into a new year? Not much and quite a ...
Here’s what a Russian invasion of Ukraine would mean for markets
Fears of a Russian invasion of Ukraine are on the rise, prompting analysts and traders to weigh the potential financial-market shock waves. “If Russia invades Ukraine, the trade is buy TY,” wrote Bren...
Opinion: The 60%-40% portfolio will deliver anemic returns over the next decade — here’s how to adapt
We have entered a new paradigm of anemic return expectations for traditional asset-allocation models. The prospects of a lost decade ahead are uncomfortably high for portfolios that are 60% invested i...