Wall Street Journal (August 2)
“Bearish investors aren’t buying into hopes that July’s rapid advance for stocks heralds the start of a new bull market. If anything, they say the worst might be yet to come as inflation remains high, the Federal Reserve plans more interest-rate increases and stocks trade at valuations that still don’t look cheap.”
Tags: Bearish, Bull market, Fed, Hopes, Increases, Inflation, Interest rate, Investors, July Stocks, Valuations
Financial Times (August 1)
“The venture capital world is in the grip of a silent crash. Unlike the stock market, there are no daily market indexes to broadcast the pain, and no individual share prices for anxious tech employees to watch as their personal wealth evaporates.” It remains unclear “how long it will take the venture capital market to reset, or how many of today’s investors and start-ups will still be standing when it does.”
Tags: Anxious, Indexes, Investors, Pain, Personal wealth, Reset, Share prices, Silent crash, Start-ups, Stock market, Tech employees, Venture-capital
Reuters (July 29)
“The prospect of a U.S. recession could mean more pain for battered stocks, despite a recent rebound that has taken the benchmark index to its highest level in more than a month.” If the U.S. is indeed entering recession “history shows the rough ride stock investors have endured this year may get even bumpier.”
Tags: Battered, Benchmark, Bumpier, Investors, Pain, Prospect, Rebound, Recession, Rough ride, Stocks, U.S.
Institutional Investor (July 18)
“Private equity investors have little to fear from a recession, as the best returns come after these periods.” A recent report by Bain Consulting shows, for example, that “following the bursting of the dot-com bubble, buyout funds generated a median IRR of 25 percent in 2001, 40 percent in 2002, and 47 percent in 2003. In 2009, after the Global Financial Crisis, they posted a 24 percent IRR.” In the near future, however, “private equity firms still face a bumpy road ahead, despite the potentially short duration of the market downturn.”
Tags: Bain Consulting, Bumpy, Buyout funds, Dot-com bubble, Fear, Investors, IRR, Market downturn, Private equity, Recession, Returns
Australian Financial Review (July 17)
“Oil has begun to drop back down this week to pre-invasion levels as traders brace for a sharp drop-off in consumption. But food price inflation remains stubbornly high.” Nevertheless, food prices remain largely off the radar. “The dramatic spikes in oil and mineral prices after Russia’s invasion of Ukraine have distracted investors from the long-lasting and more dangerous impact of food inflation.” This has led BlackRock founder Larry Fink to sound the alarm on food inflation which also has profound geopolitical impacts.
Tags: BlackRock, Consumption, Dangerous, Distracted, Drop-off, Food, Impact, Inflation, Invasion, Investors, Larry Fink, Mineral, Oil, Pre-invasion, Russia, Spikes, Traders, Ukraine
Investment Week (July 14)
“For the first time in over a decade, listed stocks and bonds are positively correlated. Combined with geopolitical tensions, record inflation and monetary policy shifts, investors are having to look further afield to achieve returns.” That has some investors looking at alternatives as “an effective diversifier that can be worked into a full portfolio.”
Tags: Alternatives, Bonds, Decade, Diversifier, Geopolitical tensions, Inflation, Investors, Monetary policy, Positively correlated, Returns, Stocks
Forbes (July 11)
“Bitcoin bulls beware: Wall Street expects the cryptocurrency’s crash to get a whole lot worse. The token is more likely to tumble to $10,000, cutting its value roughly in half, than it is to rally back to $30,000,” according to survey of 950 investors. This “lopsided prediction underscores how bearish investors have become. The crypto industry has been rocked by troubled lenders, collapsed currencies, and an end to the easy money policies of the pandemic that fueled a speculative frenzy in financial markets.”
Tags: Bearish, Bitcoin, Bulls, Crash, Cryptocurrency, Currencies, Easy money, Financial markets, Investors, Lenders, Pandemic, Prediction, Rally, Speculative frenzy, Survey, Troubled, Wall Street
Motley Fool (July 2)
“During the first six months of 2022, the S&P 500 dropped 20.6%, marking its worst first-half performance since 1970” while “the Dow had its largest first-half drop since 1962” and “the Nasdaq… had its largest percentage drop in its history.” This has left “a lot of investors worried, and understandably so. But while things might seem bleak right now, the reality is that investors really shouldn’t panic.”
Tags: 1962, 1970, 2022, Bleak, Dow, Drop, First-half, Investors, Nasdaq, Performance, Reality, S&P 500, Worried, Worst
Market Watch (June 27)
“Stock futures are inching higher at the start of the week as investors seemingly cling to newfound optimism that a bond rout is ending, and the Fed’s rate-hike plans will get pruned due to a global slowdown.” There are, of course, no shortage of issues like surging inflation, but Brynne Kelly suspects “the next black swan for markets could be failing power grids and electricity shortages.” These could prove “catastrophic” as we move into the “height of the summer cooling season amid rising temperatures.”
Tags: Black swan, Bond rout, Catastrophic, Electricity, Fed, Inflation, Investors, Kelly, Markets, Optimism, Power grids, Rate hike, Shortages, Slowdown, Stock futures, Summer
The Economist (May 28)
Signs suggest “America’s markets are entering a new, more worrying phase.” Falling share prices could initially be attributed to the Federal Reserve’s policy moves, but “in recent weeks share prices have kept falling, even as bond yields have dropped back,” a combination suggesting recession. “Indeed, the mix of Fed tightening, slowing gdp and rising production costs has the ominous feel of the later stages of a business cycle. The expansion is barely two years old. Yet investors are already worried that corporate profits are under threat.”
Tags: Bond yields, Business cycle, Expansion, Falling, Fed, GDP, Investors, Markets, Ominous, Production costs, Profits, Recession, Share prices, Signs, Tightening, U.S., Worried, Worrying
