Watch Out for a Doubling of Junk Defaults, Warns Gundlach
The Bond King fears their fundamentals are too rickety to persevere during this recession.
Market Moves
Goldman’s 10 Reasons That the Bull Market Will Resume
An array of forces will juice stocks anew and the early-September drop is just a correction, the firm argues.
Ebbing M&A Activity May Just Be Rebounding, Says Wells Fargo
The economic slump has held down merger action in 2020.
Good Vaccine News Has Immediate Impact on the Stock Market
A quarter of the S&P 500’s rise since May is linked to positive developments on a virus inoculation, UBS says.
Emerging Markets and China Hedge Funds Likely to Outperform
Regional equity gains, as well as currency increasing against a declining US dollar, helped the asset classes surge in second quarter.
Rebound Rally Often Has a Dip—And That Would Come Around Election Day
A bouncing-back S&P 500 tends to drop by 5%, two-plus months after setting a new record, says CFRA’s Sam Stovall. Would this impact the presidential race?
Why Jerome Powell Wants to Soften the Fed’s Inflation Target
The central bank’s chair, in his upcoming speech Thursday, is likely to give himself some leeway in case all the stimulus does elevate the CPI.
Say What? Long-Time Bear Becomes Bullish on the Economy
Growing household savings and unspent stimulus money buoy David Rosenberg, former Merrill economist.
This Rally Will Last a Long Time, Invesco Predicts
The economy and the stock market should be able to overcome the virus, say the firm’s strategists.
The Market’s Reaction to a Delayed Vote Conclusion? Not Good, Says UBS
The 2000 ballot-count mess teaches that stocks will slump and volatility will rise. But there’s a bright side.
Pension Investing Strategies for a W-Shaped Recovery
If this is the calm between the storms, plan sponsors should consider adjusting their tactics.
Why 3rd Quarter Earnings Might Just Romp, Sage Predicts
One-shot wonder: New stimulus money and pent-up consumer demand will fuel profits, says economist David Levy. Alas, the 4th period won’t be so hot.
UK Corporate Pension Funding Falls in July
Aggregate deficit of the PPF 7800 has more than tripled over the past year.
Seth Klarman’s Diagnosis for the Market Rally: Virus-Prompted Impatience
Investors, cooped up and eager for normality’s return, are mistakenly bidding up share prices, he contends—and it won’t end well.
How David Einhorn Is Betting on Higher Inflation
Hedge fund chief thinks a small amount of inflation is coming, so he goes for TIPS derivatives, among other plays.