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☆ Fading risks, fear of missing out may fuel US stocks after near 20% rally
▼ + stars: | 2023-06-08 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

"Further strength might beget further strength because of the FOMO factor," he added, using the popular acronym for "fear of missing out." "Inflation has clearly subsided, and yet labor market strength has remained intact," wrote BMO Capital Markets chief investment strategist Brian Belski in a recent note. “Moving past the debt ceiling and at least having some economic data that looks ok is actually enough to get some people interested,” said Keith Lerner, co-chief investment officer at Truist Advisory Services. Lerner on Monday shifted his expected S&P 500 range for this year up to 3,800-4,500, from 3,400-4,300 previously, citing improving earnings trends among other factors. For Hans Olsen, chief investment officer at Fiduciary Trust Co, that’s an ominous sign.

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☆ Wall St Week Ahead Resilient U.S. stocks failing to factor in recession, investors fear
▼ + stars: | 2023-03-31 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

NEW YORK, March 31 (Reuters) - U.S. stocks have soldiered on through a banking mess to notch solid first-quarter gains. Some investors say that performance could come under pressure if a widely expected recession hits. Wary investors say those gains leave stocks more vulnerable to an economic downturn, which may have been brought closer by tumult in the banking sector following this month’s collapse of Silicon Valley Bank. S&P 500 earnings for the first quarter are estimated to have fallen 5% from the prior year, followed by an expected 3.9% drop in the second quarter, Refinitiv data shows. Nathan Shetty, head of multi-asset at Nuveen, believes current valuations show investors have yet to price in a recession.

If the market gyrations and Silicon Valley Bank's failure are rattling your faith in stocks, there are places to look for safety. But for cash and bond allocations, T-bills – U.S. Treasurys with maturity of one year or less – might be the ticket. The rates will adjust and correct [at some point], and these short-term rates will go back to normal," he said. When buying bank CDs, investors should be mindful of the Federal Deposit Insurance Corp.'s coverage, he said. Hans Olsen, chief investment officer of Fiduciary Trust Company, highlighted short-duration, high-quality bonds are where it's at for safety.

☆ Market roiled by bank fears faces critical U.S. inflation data
▼ + stars: | 2023-03-13 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +4 min

NEW YORK, March 13 (Reuters) - A market rocked by a banking crisis faces a potential one-two punch as investors await a U.S. inflation report that could further complicate views on the Federal Reserve’s monetary policy trajectory. It has taken on added relevance in recent days, however, following concerns over financial stability after the swift collapse of Silicon Valley Bank (SIVB.O), the biggest bank failure since the financial crisis, and Signature Bank (SBNY.O). CPI for February is expected to rise 0.4% on a month-over-month basis, and 6% annually, according to a Reuters poll of economists. "That might lead to a partial reversal of the recent rally in bonds, worsening the problems in the banking sector," Capital Economics said in a note. Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Bond yields are hot, but be smart how you invest. Here’s where to begin
▼ + stars: | 2023-02-06 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Bond yields and prices move inversely to each other so, as rates rose, prices tumbled – and did so at an inopportune time since stocks were suffering, too. Thus, they have higher interest rate risk and greater price fluctuation. He likes short-term Treasury bond funds and ETFs. Another way to mitigate interest rate risk is to use a barbell: You hold equal amounts of shorter and longer-dated issues. "You don't have to reach too far in terms of credit risk and interest rate risk to capture healthy yield in today's environment."

☆ Analysis: Goodbye, TINA: higher yields muddy outlook for struggling U.S. stocks
▼ + stars: | 2022-09-29 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +4 min

NEW YORK, Sept 29 (Reuters) - Soaring interest rates are providing investors with attractive alternatives to stocks, complicating the picture for equities in an already-vicious year. Register now for FREE unlimited access to Reuters.com RegisterThat calculus has drastically changed as the Fed hikes interest rates to stave off the worst inflation in decades, bolstering yields on everything from Treasuries to money markets. Money market funds took in $30 billion in the latest week, according to Refinitiv Lipper, while equity funds, taxable fixed income funds, and tax-exempt bond funds all had net redemptions. "We are definitely getting a resizing of that now.”Reuters GraphicsOf course, the alternatives to stocks are far from risk free. Still, the robust yields are likely to continue presenting a challenge to stocks, investors said.

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