Newsmakers
Economy Is Doing Fine, So Fed Shrinks Its Balance Sheet
Policymakers don’t want a repeat of 2019, when QT ruffled the markets.
Tag: Federal Reserve
Research
Magnificent Seven’s Earnings Have Peaked, BofA Says
The big tech companies’ previous cost cutting boosted profits, but that stimulus is abating, per a bank study.
Risk
If a Hesitant Fed Won’t Cut, Other Central Banks Will, Says Ned Davis
Chair Jerome Powell declares that the Federal Reserve is in no hurry to reduce rates due to sticky inflation.
Risk
Pummeled Blackstone Real Estate Unit Seems Poised for a Revival
As redemptions dwindle, BREIT makes acquisitions and banks on falling rates.
Risk
Fed Aims to Start Slowing Its Bond Reduction Drive ‘Fairly Soon’
Shrinking the central bank’s balance sheet has been ongoing for two years.
Risk
That ’70s Show: Can Stagflation Return?
Several finance savants, including Jamie Dimon, admonish that high inflation and a punk economy could stage a comeback.
Risk
Leveraged Loan Returns Rise Even as Credit Quality Worsens
The solid economy and expected rate drops are powering the risky asset class higher, Ned Davis reports.
Market Moves
Rate Cuts: The Fed and the Futures Market Draw Closer Together
Odds are that improved economic news will slow rate declines, but that may not be much of a tonic for stocks, says LPL.
Risk
What if the Economy Has a No-Landing Outcome?
Everyone expects a soft landing, but Ned Davis sketches how that felicitous result might not happen.
Risk
Yield Curve Will Right Itself, Finally, but Not Until Year-End, Experts Say
Next question: What happened to the inverted arc’s role as a recession portent?
Risk
Vexing Gap Persists on Rates: Investors vs. Fed Officials
Futures market expects deeper cuts ahead than the central bank bunch projects.
Research
Why Stocks Might Rise 10% in 2024, per CFRA’s Stovall
When the S&P 500 advances more than 20%, as it did in 2023, history says it will climb an average 10% in the next year, an investment sage finds.
Market Drivers in 2024: The Magnificent Seven? Something Else?
The mega-cap tech giants appear invincible. But things always change in the market.
Market Moves
Bob Doll’s 2023 Predictions Underperformed
The Wall Street heavyweight’s forecast did not live up to his three-decade record, as a widely predicted recession did not materialize.
Risk
What If Inflation Is Stuck at 3%, Derailing Fed Reductions?
The central bank wants the price index growth to ratchet down to 2%.