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Callie Cox: The biggest risks include whether the Fed can get inflation down, and whether we enter a recession. The job market and corporate earnings are the two catalysts that make me think we can avoid those risks. CC: The Fed will be more responsive to what's happening in the job market, because the job market directly impacts inflation. Services inflation — think rent, haircuts, insurance prices — is still growing at a 7% clip annually, which is way too high in the Fed's mind. And the kicker here is that services inflation is the type of inflation that the Fed can best control through the job market.
In an interview with Insider, eToro investment analyst Callie Cox highlighted the two biggest risks to monitor this year. "The kicker here is that services inflation is the type of inflation that the Fed can best control through the job market," she said. "But one bright spot of this scenario," Cox said, "is that it would take care of the inflation problem because when demand drops, inflation comes down." And as far as stocks, Cox likes a defensive positioning with consumer staples, utilities, energy, and pharmaceutical companies. "If we do hit a recession," Cox said, "it's a great time to slowly build up your risk appetite in anticipation of us getting through it."
[1/2] Bitcoin are seen in this illustration picture taken September 27, 2017. The overall global crypto market cap has risen 5% to $871 billion since Jan. 1, but it's still down over 57% from this time last year. Bitcoin itself has gained 4.3% since the start of 2023, though stuck in a narrow range between $16,500 and $17,300. For some market players, though, subdued sounds pretty good after the bitcoin bloodbath of 2022. Reuters GraphicsTHE BULL'S TALEMarcus Sotiriou, analyst at digital asset broker GlobalBlock, pointed to tightening Bollinger bands - a technical indicator tracking price and volatility - on bitcoin charts.
Perhaps the one thing that investors can rally around is this: 2022 is finally over. Here are three valuable lessons for investors in the aftermath of 2022. Before we entered a rising interest rate environment, high-flying tech stocks seemed to have limitless potential. "Many investors saw a high rate, high inflation year for the first time since the 1980s. And if we think about [2023] as well, it's still a high rate, high inflation environment."
The other was the riskiest of risk assets, whose moves mirrored those of tech stocks. It won't happen overnight, but investors more than ever want to see a crypto market driven by utility rather than speculation . Barclays analyst Benjamin Budish said his team believes "crypto assets are likely to continue to behave like high-beta risk assets going forward." Investing in the next two quarters Bitcoin has fallen more than 60% this year and sits roughly 75% off of its all-time high from November 2021. When there's a pullback in that growth, as there was this year, bitcoin tends to struggle, Alden explained.
A new bull market may already be underway, according to eToro's US investment analyst. If the economy avoids a recession, then it's possible stocks have already bottomed out and will tick higher in 2023, Callie Cox told Insider. "Typically, new bulls don't actually feel like bulls, but it's costly if you miss the beginning of one." In eToro's year-ahead outlook, Callie Cox makes the case that even though it may not seem like stocks are on the upswing, it's rarely the case that bull markets resemble bull markets in the early stages. "A bull market starts at the lowest point of a bear and is confirmed when an index reaches a new 52-week high," Cox told Insider.
Wall Street is warning of a stormy start to 2023 , but investors should prepare to find pockets of opportunity and ensure their portfolio is running efficiently. Bond prices have tumbled alongside stocks, such that even the iShares Core Growth Allocation ETF – which is based on a 60/40 split between equities and fixed income – has dropped nearly 15%. Higher yields on fixed income The silver lining of the Federal Reserve's interest rate hiking campaign is the rising yield investors can find on even the most boring fixed income offerings. Meanwhile, Series I savings bonds that are issued from Nov. 1 to April 30, 2023 have a current interest rate of 6.89%. Short-term Treasurys are another attractive option for your fixed income sleeve.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBitcoin jumps back above $17,000, and SBF blames himself for FTX's collapse: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Callie Cox of eToro discusses the impact of Binance backing out of the FTX rescue on crypto markets and the industry as a whole.
Cryptocurrencies climbed Thursday as the market took a pause from its two-day sell-off and investors digest key inflation data and the ongoing FTX saga. Bitcoin rose 5% to $17,351.10, while ether advanced 9% to $1,281.04, according to Coin Metrics. Cryptocurrencies jumped right around the time CPI data was released, showing a smaller-than-expected rise and giving investors hope that price pressures may be cooling. Stocks also rallied following the CPI data. "Right now, it's hard to digest from a price standpoint because crypto doesn't have a fundamental center of gravity.
Stocks slip as control of Congress remains unclear
  + stars: | 2022-11-09 | by ( Paul R. La Monica | ) edition.cnn.com   time to read: +3 min
Stocks dipped, with the Dow sliding nearly 300 points, or 0.9%, in late morning trading. One stock in particular that had been surging in anticipation of a sweeping victory for the GOP got hit hard Wednesday. The market rallied sharply during the past three days following a historic surge for stocks in October. Still, as the midterm dust settles, investors may now shift their attention back to inflation and the economy. “Markets have performed remarkably similar during periods of a Republican or Democratic controlled Congress.”
The midterm elections are next week, and some investors are closely watching the outcome for an idea of how the next Congress's lawmakers will approach cryptocurrency over the following two years. Lawmakers and regulatory agencies have scrambled to sharpen their understanding of the fledgling sector, while the industry itself has beefed up its lobbying. There's a good chance the midterm elections will hardly dent the price action in the days that follow. They say the midterm elections and the new shape of Congress could affect how the legislative process unfolds. While the bear market has dominated headlines this year, the drumbeat for crypto regulation has gotten much louder, providing some comfort to members of the crypto industry.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBitcoin rises as Fed hints at policy shift, and BitDeer delays Wall Street debut: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Callie Cox of eToro discusses macro pressures weighing on crypto investors.
The month of October, celebrated as "Uptober" by long-time crypto investors, has historically churned out some big gains for bitcoin. In seven of the last 10 years, bitcoin has posted a positive month. For four of the last six years, ether has ended the October trading month higher, according to Kaiko. Bitcoin was lower for the month by 0.3% as of Tuesday, while ether was down 1.4%, according to Coin Metrics. "Crypto market volatility has dipped to multi-year lows over the past month, with bitcoin's 20-day volatility now equal to that of the Nasdaq equity index," Kaiko head of research Clara Medalie told CNBC.
In any other year, the bitcoin price would have skyrocketed after the BlackRock announcement, but it didn't. Bitcoin hit its all-time high on Nov. 8, less than a week after the Fed first introduced the tapering . "Bitcoin OGs want to believe that it's a risk-off asset – that's a long-term trajectory," said Burak Tamac, senior researcher at CryptoQuant. It's bitcoin that's received so much hostility about being environmentally unfriendly, but myths about the cryptocurrency's environmental impact are slowly being debunked . Beyond bitcoin, crypto remains just a little too out of reach for many.
Dow drops 300 points as traders fret over FedEx warning
  + stars: | 2022-09-16 | by ( Jesse Pound | ) www.nbcnews.com   time to read: +1 min
Stocks fell Friday as Wall Street headed toward a big losing week, and traders absorbed an ugly earnings warning from FedEx about the global economy. The Dow Jones Industrial Average dropped 306 points, or 1%. That data sparked a decline of more than 1,200 points for the Dow. “There is a lot of nervousness about how the global economy can affect the U.S. economy now, while the U.S. economy is dealing with its own set of very serious issues. The Dow Jones Industrial Average has declined 4.7% this week, while the S&P 500 is 3.8% lower.
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