It’s been a tough year for many investors and we don’t think we’re in a position yet to call a tactical bottom for either stocks or bonds. But looking out strategically, based on better valuations and still solid fundamentals, we think the long-term outlook has brightened quite a bit.
A slight moderation in inflation will likely provide some needed boost in consumer confidence but we may have to wait another month. The April inflation report was not as soft as many hoped.
It’s been a very tough start to the year with both stocks and bonds down sharply. So perhaps it is no surprise that investor sentiment polls are showing signs of extreme pessimism.
The Federal Reserve ended its two-day Federal Open Market Committee meeting yesterday with a 50 basis point (0.50%) hike in short-term interest rates — broadly in line with market expectations.
“Sell in May and go away” is probably the most widely cited stock market cliché in history. This week, we tackle this commonly cited seasonal pattern and why it might not play out this year, similar to recent years.
With the S&P 500 Index in correction territory while the market faces a number of big threats, studying market history for reminders of the benefits of long-term investing can be helpful.
The selloff continued on Tuesday, with the S&P 500 Index down 7.8% in the usually bullish month of April. With three days to go, this could go down as the worst April since a 9.0% drop in 1970.
Inflation continues to soar, dominating conversation and stretching consumer wallets, but we do see some potentially good signs. Here are three reasons inflation could be near a peak.
The unrelenting move higher in U.S. Treasury yields continued last week making it the 15th week (out of the past 16 weeks) that the yield on the 10-year U.S. Treasury security ended the week higher.
Earnings will be key to the path for stocks the rest of the year given that we believe valuation expansion will be tough to come by with higher interest rates and stubbornly high inflation.
