Displaying items by tag: bull market

Monday, 21 February 2022 19:59

Phase One of Bond ETFs’ Rough Year May Be Over

Many investors are fretting over the rising bond yields which are sending their prices tumbling, but this could just be the tip of the iceberg. The aggregate bond index AGG has already fallen 3.9% and that's with the critical 10-year T-bill only rising to a 2% yield. If the 10-year hikes all the way up to its high of 3.25% in 2018 that could be a disaster. With inflation at a 40-year high that's a real possibility and any yield you are getting is all eaten away at. However, if inflation is temporary (caused by supply chains) or Fed pulls breaks fast enough then yields might be maxing out, and bond prices could turn around.


Finsum: Inflation expectations are remarkably low which means that investors are convinced either the Fed will credibly bring inflation down or as supply chains loosen that will bring inflation down. Markets are saying that bond risk is priced in.

Published in Bonds: Total Market
Monday, 21 February 2022 19:58

Don’t Miss Out on These Dip Opportunities

Markets are flummoxed as to the variety of risks right now, and it is just unclear how aggressively if at all the Fed and Biden are going to respond to the economic threats. There are two ways to capitalize on the current dip that is hitting your portfolio. The first is tax-loss harvesting; these risks are ones that are more than a month long which could give you the opportunity to repurchase the drops you made in the upcoming months. For those investors who feel adequately equipped in the tax-loss harvesting space, rebalancing is the main tool. That is if your portfolio has lost 10% value inequities with the drops, then up your share to meet the ratios you were at pre-dip. Once stocks have rebounded you can capitalize and re-tool in the opposite direction to maintain the portfolio balance you want in order to serve your risk preferences.


Finsum: Don’t sit during the volatility, but don’t sell off unless you are going to capitalize on the tax efficiency in your portfolio.

Published in Eq: Total Market
Monday, 14 February 2022 17:14

JPMorgan Says Now is the Time to Buy the DiP

Finding a successful stock market predictor is like finding a needle in a haystack, but JPMorgan says they have the indicator, and now is the time to buy in the stock market. The buying guide is when the CBOE Volatility Index grows by over half of its one-month moving average. This has a near bulletproof historical record, only falling during recessions in the last 30 years. Markets gained an average of 9% in the equities in the two quarters after the metric was triggered. Overall, JPMorgan is bullish about the near future in equities and believes there is a lot of runway ahead.


Finsum: Metrics like this can be an anomaly or indicative of something structural underneath, still a recession isn’t out of question with Fed taper tantrum possibilities.

Published in Eq: Total Market
Friday, 28 January 2022 14:21

Why It’s Time to Invest in Energy

Energy stocks went through a long, rough period leading into 2021. Since 2014, the whole sector has been maligned by low prices and sluggish demand. Renewable energy had stolen a lot of attention and funding and the traditional energy sector languished. However, a unique set of economic circumstances means it may be the right time to get back into energy. Oil prices have been rising strongly (a good inflation hedge), which is a nice catalyst, but almost more importantly, higher interest rates—which are clearly on the horizon—are a big headwind for renewables. Renewable energy projects take a great deal of financing and a long time to set up, which means higher rates increase costs and slow down financings.


FINSUM: Energy seems to be getting back in vogue, that said, the rise of ESG standards in debt financing might mean traditional energy projects also suffer.

Published in Eq: Energy
Wednesday, 05 January 2022 20:00

JPMorgan Gets Very Bullish

JPMorgan Chase & Co issued a statement for investors to remain bullish about global equities moving forward. They believe the largest sources of risk are hawkish central banks, slowing growth in China, and global covid restrictions, but most of these threats are already priced in. Even if they aren’t quite priced in the chances of them really materializing is minimal. They remain positive as benchmark indices remain at near all-time highs. This sentiment is shared by lots on Wallstreet, like Credit Suisse. Moreover, to best take advantage of this growth, they advise to overweight Euro stocks, financial, commodity miners, and automobile manufactures.


FINSUM: The bears haven’t stopped barking but equities remain high and P/E ratios aren’t crazy, there’s room to run. 

Published in Eq: Total Market
Page 3 of 22

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…