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Wall Street boasts record closes as inflation data fuels rate-cut bets #cashflowmanagement #investement #equityresearch #business #growth #InvestmentBanking #valuations #portfoliomanagement #wealthmanagement #riskmanagement #NYSE #nasdaq #equityresearch #NSE #liquidity #forex #globaltrade #sustainablefinance

The market is betting that the Federal Reserve will eventually start cutting interest rates later this year. What should investors do to get ahead of that? Chad Oviatt of Huntington Private Bank told me that bonds and emerging market dividend stocks could be the way to go. Find out what ETFs he is recommending in my latest for Investor's Business Daily. #stocks #bonds #fixedincome #interestrates #dividends #emergingmarkets #inflation #federalreserve https://lnkd.in/eUgJJM2S

Ever wonder what your investment portfolio woiuld be like if you invested in Stocks, bonds or cash. In different periods one asset class may outperform the other. For example in 2008 financial crisis you could have been better off invested in cash. However, if you stayed in cash rather than stocks after the markets started recovering in 2009, you would be kicking yourself. #stocks #bonds #cash #assetallocation

Bond market drawdowns: 3-7 year Treasuries -10% The Agg -12% 7-10 year Treasuries -20% 20-30 year Treasuries -43% Zero coupon bonds -58% Sprinkle in 20% cumulative inflation and the real returns are even worse. So why aren't investors freaking out about bond losses in the midst of the worst bond bear market ever? https://lnkd.in/ggx_9GMZ

The volatility in bonds continues to be the main driver of markets, and in recent weeks a sharp drop in bond yields has brought a sense of relief. Investors looking to profit from a descent in yields typically look to the bond market first, but in recent weeks it has been dividend paying stocks that have seen the most benefit, which may continue if yields continue to fall in the context of economic growth.

This Bond Market Indicator Says the Stock Market Will Be Fine Credit spreads between Treasuries and corporate bonds have widened but still remain at historical levels. The stock market’s slide is forcing investors to take a hard look at the economy. The good news: Indicators in the credit market—for the moment—say the stock market will be just fine. The S&P 500 sold off Monday and is now down 8% from its record high hit in July. It was due for such a tumble. The S&P 500, after all, had gained 38% from a key low point in October to its all-time high, before this pullback. In markets, what goes up must come down. Driving the drop for the majority of stocks—outside of Nvidia—is a “growth scare” for the economy. Friday’s July jobs report missed expectations, and the number of jobs added was thousands less than the prior report. Manufacturing data last week showed slowing growth, and many restaurants are reporting that traffic to locations is down in the face of high prices and interest rates. This raises the question for the market of whether this moment is one that precedes an ugly recession or one that’s merely seeing investors finally start to account for slowing growth. The latter argument has plenty of support from what’s currently seen in the credit market. B First, a quick primer on that: Yields on corporate and mortgage bonds are viewed somewhat differently than Treasury yields. Treasury bonds are guaranteed by the near-perfect credit of the U.S. government. But companies and people can fail to pay the entire of their debts if earnings and business or employment conditions worsen. That’s why yields on securities in the credit market—or corporate and mortgage bonds—are always higher than Treasury yields. Investors need additional compensation for the added risk they are taking by owning this debt. That’s why credit investors monitor “credit spreads,” or how many percentage points these bonds yield above Treasuries. The higher the spread, the more risk the credit market sees to corporate and household earnings. The smaller the spared, the more optimistic the market is on the economy and earnings. Spreads have increased. The average spread for U.S. high yield bonds with more than 1 year of maturity, which are some of riskiest bonds, is now at about 3.7 percentage points, according to the St. Louis Fed. That’s up from 3 points weeks ago—and the increase looks like a straight line upwards on a chart. The credit market is reflecting that people’s income will disappoint, spending will drop, and companies will rake in smaller profits, bringing about higher risk that borrowers won’t fully make good on their payments. This Bond Market Indicator Says the Stock Market Will Be Fine https://lnkd.in/dbE7_UsR

Learn how the interest rate cut by the #FederalReserve, along with a couple other key events last week, created momentum in the stock market in our #iWealth #WeeklyMarketUpdate: https://lnkd.in/gJuzBzJB #FinancialPlanning #WealthManagement #InvestingStrategies #WallStreet

Earnings results since yesterday's close have garnered mixed responses. Another move up in rates has contributed to premarket selling in equities. The 10-yr yield is up two basis points to 4.20% and the 2-yr yield is three basis points higher than yesterday at 4.05%. Read more.

Earnings results since yesterday's close have garnered mixed responses. Another move up in rates has contributed to premarket selling in equities. The 10-yr yield is up two basis points to 4.20% and the 2-yr yield is three basis points higher than yesterday at 4.05%. Read more.