Barron’s (December 16)
“Investors betting on future interest rate moves expect the Fed to cut rates a quarter-point, ending 2024 with a federal-funds rate in the range of 4.25%-4.5%.” That not something bond investors like. They are increasingly “shunning long-term Treasuries,” with the yield on 10-year Treasuries moving beyond the “20-day moving average of 4.293% on Thursday,” before “topping 4.4% during intraday trading on Friday.”
Tags: 10-year Treasuries, 4, 4.293%, Bond investors, Fed, Federal-funds rate, Future, Interest rate, Intraday trading, Investors, Shunning, Yield
Institutional Investor (December 16)
“A cross examination of forecasts from asset managers shows that artificial intelligence will be front and center for investors…. Putting geopolitics and economic forecasting to one side for a second,” AI is the “one thematic priority that sticks out.” Artificial intelligence is “being touted as a structural game changer for all industries the likes of which we haven’t seen since the invention of the internet, massively improving efficiency and productivity for those that are able to effectively harness it.”
Tags: AI, Asset managers, Cross examination, Economic forecasting, Efficiency, Forecasts, Game changer, Geopolitics, Internet, Investors, Productivity
The Economist (December 11)
“Since America elected Donald Trump as president on November 5th, the value of its listed firms has increased by $4.2trn, more than the entire worth of London’s stockmarket. The S&P 500 is up by nearly 30% this year. At 23 times its forward earnings, the index has rarely been so highly rated by investors.”
Tags: $4.2trn, 23x, Forward earnings, Index, Investors, Listed firms, London, President, S&P 500, Stockmarket, Trump, U.S., Value
New York Times (November 27)
“The inflation risk stalking the markets eased over the summer,” but is now “front and center again as investors contend with a Trumponomics crackdown on immigration, a rising trade-war risk and a potential bonanza of tax cuts.” Trump’s “latest trade threats show how uncertain the outlook could be”. Since he vowed “to impose tariffs on Canada, China and Mexico…analysts have been gaming out the potential impact.” It could be an opening gambit of little consequence, but “economists fear that it could add bottlenecks and costs to supply chains and reignite inflation, and that it could scramble the Fed’s policy on interest rates.”
Tags: Bottlenecks, Canada, China, Costs, Crackdown, Fed, Immigration, Inflation, Interest rates, Investors, Markets, Mexico, Risk, Supply chains, Tariffs, Tax cuts, Trade war, Trumponomics, Uncertain
Fortune (November 17)
“For investors who’ve enjoyed the S&P 500 Index’s more than 50% jump since the start of 2023, the best hope for keeping the market rolling into 2025 and beyond may be Trump’s fear of doing anything to damage a rally.” Many of Trump’s campaign promises weren’t exactly “investor-friendly,” with some considered market anathema. Still, “Wall Street doesn’t believe Trump will tolerate a declining stock market, even if it’s caused by one of his own proposals.”
Tags: 2023, 2025, 50% jump, Anathema, Campaign promises, Damage, Fear, Hope, Investors, Rally, S&P 500, Stock market, Trump, Wall Street
New York Times (October 31)
“As investors, economists and world leaders weigh the prospects of Donald Trump winning the election, one of their biggest questions is how he would potentially upend global trade.” It’s not just the threat of tariffs, but also measures like what the candidate refers to as the “Trump reciprocal trade act” through which he hopes to punish the European Union for “supposedly not buying enough American-made goods.”
Tags: Candidate, Economists, Election, Global trade, Investors, Prospects, Punish, Tariffs, Threat, Trump, Upend, World leaders
Bloomberg (October 28)
“Political uncertainty will likely weigh on sentiment for investors in Japanese assets after the ruling coalition led by the Liberal Democratic Party failed to win a majority in parliament for the first time since 2009.” Though this uncertainty was not priced in, there may still be buying on dips, and “global investors are still pinning hopes on Japan’s improving corporate governance as a factor to buy equities.”
Tags: Assets, Coalition, Corporate governance, Dips, Failed, Investors, Japan, LDP, Majority, Parliament, Political uncertainty, Sentiment
Investment Week (October 14)
“Environmental, social and governance considerations among private investors have continued to fall for the third year in a row amid a declining love for ESG.” The annual ESG Attitudes Tracker found that “the percentage of respondents… who claimed they consider ESG when investing dropped to 48%, down from 53% in 2023, 60% in 2022 and 66% in 2021.” Lackluster performance in the ESG sector appears to be “the core reason” for the waning enthusiasm.
Tags: Attitudes Tracker, Declining love, Dropped, ESG, Fall, Investors, Lackluster, Performance, Respondents, Waning enthusiasm
CNN (October 9)
“The S&P 500 index has gained roughly 21% for the year, notching dozens of record highs along the way as artificial intelligence enthusiasm helps drive stocks higher.” Amid “rising confidence that the US economy will achieve a soft landing” and recent data points suggesting strong economic footing, investors will be “looking to the upcoming earnings season for clues about the US economy’s health.”
Tags: 21%, Artificial intelligence, Clues, Confidence, Earnings season, Economy, Enthusiasm, Health, https://edition.cnn.com/2024/10/09/investing/earnings-companies-stocks/index.html S&P 500, Investors, Record highs, Soft landing, US
Washington Post (September 13)
The White House may not immediately “move to block Nippon Steel’s bid to acquire U.S. Steel amid mounting concerns over the political and economic consequences of nixing the deal.” In recent weeks, “investors, Pennsylvania Democrats and some members of the steelworkers’ union warned that the deal’s collapse could spark an economic calamity for Pennsylvania’s beleaguered steel belt.” Optimism again appears to be growing that the deal might go through with shares of U.S. Steel rising “by more than 12 percent over the past two days of trading.”
Tags: Block, Calamity, Concerns, Consequences, Economic, Investors, Nippon Steel, Nixing, Optimism, Pennsylvania, Political, Shares, Steelworkers’ union, U.S. Steel, White House
