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Search resuls for: "Tim Murray"


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Get out of cash — that's what many on Wall Street have been saying since expectations of rate cuts started rising earlier this year. They're now doubling down on that call, with the U.S. Federal Reserve signaling that it would finally cut rates in September. That would make cash rates less attractive than other parts of fixed income. "An easier tack from the central bank is likely to buoy risk markets like high yield fixed income and other spread product, including structured products, investment grade corporates and emerging market debt," said Robert Tipp, chief investment strategist and head of global bonds at PGIM Fixed Income. For investors looking for ideas, here are the top-performing global fixed income funds covered by Morningstar.
Persons: They're, Rick Rieder, Robert Tipp, Tim Murray, Price Organizations: U.S . Federal Reserve, Morningstar
Several large investment firms are writing off a recession in the US in 2024 as growth holds up and inflation steadily declines, but T. Rowe Price thinks that optimism may be misplaced. While T. Rowe Price doesn't have an official call on the economy, the brightest minds at the $1.4 trillion Baltimore-based firm urged investors to be cautious at a mid-November conference. However, T. Rowe Price is skeptical that the Fed will end its fight against inflation anytime soon. T. Rowe Price found that through October, those names rose 53.2% compared to a 1.2% year-to-date return for the other 493 companies in the S&P 500. Dom Rizzo, a portfolio manager of global technology equity strategy at T. Rowe Price, agreed that the Magnificent 7's momentum won't stop just because the group is pricey.
Persons: Rowe Price, Goldman Sachs, Goldman, Jan Hatzius, Rowe Price doesn't, We're, Tim Murray, Rowe Price's, Murray, We've, Rowe, Uruci, he's, it's, Tesla, let's, Dom Rizzo, Rizzo, septet, Santa, He's Organizations: Citi, UBS Global Wealth Management, Business, Federal Reserve, Apple, Microsoft, Nvidia, Meta, AMD Locations: Baltimore, Santa Clara
Investors are also closely watching the path of Treasury yields, which rattled equity markets in recent days by rising to fresh year highs. The S&P 500 fell 2.27% this week, its biggest weekly decline since March 10. Janasiewicz of Natixis said a stronger-than-expected consumer price reading next week could spark a decline of up to 5% in the S&P 500. A stronger-than-expected inflation number next week could also boost Treasury yields further. Rising yields on Treasuries, viewed as among the world's safest investments because they are backed by the U.S. government, can dull the allure of stocks.
Persons: Brendan McDermid, Jack Janasiewicz, Natixis, Aaron Chan, Refinitiv, Tim Murray, Rowe Price, Brent, Ann Miletti, Fitch, Keith Lerner, Lerner, Carolina Mandl, Lewis Krauskopf, Ira Iosebashvili, David Gregorio Our Organizations: U.S, REUTERS, Federal Reserve, Natixis Investment, Amazon.com, Cruise, Treasury, U.S ., Advisory, Wall Street, Amazon, Google, Apple, BofA Global Research, JPMorgan, Carolina, Thomson Locations: Wall St, New York, U.S, Stocks, Refinitiv
"There's reason to believe that the pessimism we saw at the start of the year is giving way to a stronger-than-expected market." Murray has increased his allocation to small-cap stocks, which tend to be among the most direct beneficiaries of economic growth. Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%. Ten of the 11 S&P 500 sectors are firmer for the month to date, compared to only six for the year. Stronger-than-expected jobs growth and robust consumer spending have been among the data points that have bolstered investors' economic outlook.
Persons: Tim Murray, T Rowe Price's, Murray, Russell, Dow, Howard Silverblatt, Goldman Sachs, Saira Malik, Max Wasserman, David Randall, Saqib Iqbal Ahmed, Lewis Krauskopf, Ira Iosebashvili, Richard Chang Organizations: YORK, Energy, Reuters, Apple Inc, Microsoft Corp, Inc, Amazon.com Inc, Nvidia Corp, Tesla Inc, Dow Jones, Capital Economics, Miramar Capital, Starbucks Corp, Target Corp, Thomson Locations: U.S
NEW YORK, May 12 (Reuters) - A U.S. stocks rally is leaving behind smaller companies, a sign that investors may be bracing for economic turmoil ahead. "Typically in a recession, small caps underperform." Last month it downgraded its view on U.S. small caps from "unfavorable" to "most unfavorable." Some investors are more upbeat about the outlook for small caps, particularly when looking beyond the next several months. One reason is that small caps, being sensitive to economic fluctuations, tend to shine early in a market recovery.
But investors are guarded, wary that another bank run could erupt if people believe U.S. or European regulators won't protect depositors. Uncertainty over the Fed's intentions is amplifying investors’ hesitation in stocks and sparking huge swings in U.S. government bond prices. The Fed raised rates by 25 basis points on Wednesday but indicated it was on the verge of pausing further increases. Risk assets have been somewhat resilient despite the concerns in the banking sector, said Jason England, global bonds portfolio manager at Janus Henderson Investors. England expects longer-duration bond yields to start to rise from current levels, making short-term bonds and money market funds more attractive.
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