Markets and the Trump Factor: Unpriced Risks and Opportunities
Trump’s Second Term Begins: Investors Brace for Markets Volatility As Donald Trump begins his second term as president of the United States on January 20, all eyes are on how his policy agenda will shape the economy and markets. During his campaign, Trump made bold promises on issues like immigration, international trade, and even cryptocurrency. […]
S&P 500 Climbs as Investors Anticipate Trump’s Economic Policies
The U.S. stock market expanded its rally this week, with all S&P 500 sectors posting gains, as declining bond yields provided relief from their recent sharp rise. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all recorded weekly gains, pushing each index into positive territory for January, according to FactSet. The S&P 500 […]
Why Yesterday’s Market Surge Isn’t a Sign of Long-Term Recovery
Price surges happen more frequently during bear markets than bull markets. This is a critical point to consider when evaluating significant market rallies, such as the one on January 15, following optimistic interpretations of recent U.S. inflation data. On that day, the Nasdaq Composite Index (COMP) surged 2.5%, leading some to declare that the bull […]
S&P 500 Financials: Best Day Since November
Market Rally Fueled by Cooling Inflation and Strong Bank Earnings, Says Wells Fargo’s Sameer Samana Bank stocks surged on Wednesday as investors welcomed the kickoff of earnings season and found reassurance in fresh data indicating a slowdown in core inflation. “The market was primed to rally,” explained Sameer Samana, senior global market strategist at Wells […]
60/40 Portfolio Beats Hedge Fund in 2024
Barclays has estimated hedge fund investor returns to be between 10% and 11% in 2024, based on a weighted average across investor types, including pension funds, family offices, and private banks. This performance aligns with Hedge Fund Research’s weighted composite index, which also rose 10% last year. However, a traditional 60/40 portfolio, consisting of 60% […]
Historic Bond Shift Shakes Stock Market
Recent strong labor market data and rising consumer inflation expectations have only fueled these worries, resulting in stock sell-offs and a bond market rout. Since the early 1980s, there have been only two instances where the 10-year Treasury yield surged nearly as much as the Federal Reserve slashed interest rates. This rare phenomenon is primarily […]
