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 […]
Dow Shrugs Off Inflation, But Yields Signal 2025 Concern
Investors are increasingly focusing on inflation’s long-term outlook, even if today’s consumer-price index (CPI) reading met expectations and didn’t shake markets significantly. The latest CPI data drew investor attention as they also considered potential inflationary effects of policies proposed by Donald Trump in his bid for a second presidency. “While investors brushed off today’s inflation […]
Should You Leave Stocks? Here’s Why to Hold On
Despite recent strong stock performance, Deutsche Bank strategists reminded investors that the past 25 years haven’t been particularly stellar for stocks. Their report outlines how, since 2000, global markets and economies have been shaped by rising debt levels, slower demographic growth, and stalled globalization. In 2000, for instance, the U.S. Congressional Budget Office anticipated paying […]
S&P 500 Eyes Mid-6,000s: What’s Fueling the Rally?
Tony Roth, Chief Investment Officer at Wilmington Trust, suggests the S&P 500 could reach the mid-6,000s in the next two months, driven by a recent surge in market confidence. On Monday, the S&P 500 closed above 6,000, and the Dow Jones Industrial Average surpassed 44,000, bolstered by post-election optimism after Donald Trump’s presidential win and […]
Why Wall Street No Longer Predicts Elections
This year’s surge in the Dow Jones seemed to favor Democrats and Kamala Harris in the presidential election, yet it highlighted the growing disconnection between Wall Street and Main Street. While the stock market has often been viewed as a predictor of election outcomes, it missed the mark this time, prompting a need to investigate […]
