Sticky Inflation? Insights from Commodities and Stocks
Tariffs and Inflation: BNY Wealth CIO Says It’s ‘Far Too Early’ to Predict Significant Impact Inflation Concerns Resurface as Investors Eye Policy ShiftsU.S. financial markets are grappling with renewed inflation fears following President-elect Donald Trump’s victory, as investors weigh the potential impact of proposed policies like tax cuts and import tariffs. These measures, some argue, […]
Is the S&P 500 Overvalued by 25%
A Bull Market Built on Earnings Outshines One Driven by Emotion The resilience of a bull market hinges on its foundation. A market rally anchored in strong earnings is fundamentally sturdier than one fueled by investor sentiment alone. Recent volatile trading patterns highlight this fragility. Take Nov. 19, for instance: the Dow Jones Industrial Average […]
S&P 500 Bounce: Bull Market to Accelerate in 2025?
Morgan Stanley’s Andrew Slimmon: ‘It’s hard to see the market correcting between now and year-end.’” The S&P 500 has rebounded from last week’s dip, which briefly erased its U.S. election bump but left the index on track for a strong 2024 finish. The outcome of the November 5 election could amplify the ongoing bull market, […]
2025 Profit Warnings: Should Investors Worry?
High Valuations Elevate Risks Amid Typical Q4 Forecast Declines As year-end approaches, Wall Street analysts are engaging in a familiar practice: trimming their profit forecasts for the coming calendar year. By mid-November, expectations for S&P 500 earnings in 2025 had dropped to $274.96 per share, down from $279.68 in June and $276.66 in late September, […]
Fed Signal Flashes Warning After 10 Years
Bears Are Betting on This Earnings-Based Market Predictor — But It Rarely Delivers No, the “Fed model” isn’t poised to sink the stock market anytime soon. The model, well-known among market enthusiasts, compares the stock market’s earnings yield (the inverse of the P/E ratio) to the 10-year Treasury yield. According to its adherents, equities are […]
Powell Signals No December Cut, Stocks React
Economic Strength Allows Fed to Tread Carefully, Says Chair Powell Federal Reserve Chair Jerome Powell stated Thursday that there’s no need for the central bank to rush into lowering its benchmark interest rate, citing a resilient economy that supports a cautious approach to rate decisions. Speaking to business leaders in Dallas, Powell remarked, “The economy […]
