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That could support a rally in 10-year Treasury bonds and help stocks extend their recent gains, they said. "I think the markets are rallying at the prospect of gridlock," said Jack Ablin, chief investment officer at Cresset Capital in Chicago. Historically, stocks have tended to do better under a split government when a Democrat is in the White House, with investors attributing some of that performance to political gridlock that prevents major policy changes. The benchmark index has risen about 5% over the last month, cutting its year-to-date decline to about 20%. With U.S. equity options market positioned for relative calm, a surprisingly strong showing by Democrats could upend markets.
3 Wall Street awaits midterm vote tallies in upbeat mood
  + stars: | 2022-11-09 | by ( ) www.reuters.com   time to read: +3 min
The S&P 500 (.SPX) rose 0.56% on Tuesday during voting that will determine control of the U.S. Congress, with investors betting on a political stalemate that could prevent major policy changes. Republicans are favored to win control of the House of Representatives and possibly the Senate, polls and betting markets show, though it may be hours before all vote tallies are known. BROOKS RITCHEY, CO-CIO, K2 ADVISORS"If we get a split Congress, we might have to adjust our portfolios to be less defensive than we are today." JACK ABLIN, CHIEF INVESTMENT OFFICER, CRESSET CAPITAL, CHICAGO"I think the markets are rallying at the prospect of gridlock." Compiled by the Global Finance & Markets Breaking News teamOur Standards: The Thomson Reuters Trust Principles.
Republicans are favored to win control of the House of Representatives and possibly the Senate, polls and betting markets show, though there are still hours left to vote. "I think the markets are rallying at the prospect of gridlock," said Jack Ablin, chief investment officer at Cresset Capital in Chicago. "Fiscal spending has created a challenge for central banks worldwide. The S&P 500 (.SPX), which finished up 0.6% on the day, has risen about 5% over the last month. Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
We are back to fair value, says Cresset Capital's Jack Ablin
  + stars: | 2022-11-01 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe are back to fair value, says Cresset Capital's Jack AblinJack Ablin, Cresset Capital founding partner and CIO, joins 'Power Lunch' to discuss fair value returning to markets, energy market moves and the Fed's evolving definition of beating inflation.
Schatz of Heritage Capital looks for what he calls "high-flier" or "second-tier" technology stocks severely battered this year but pushing higher. Playing defense When looking outside of big tech, investors may also want to consider looking out for more defense-focused names. His picks include IBM, which trades at just 14 times forward earnings and offers a sticky revenue base. Schatz of Heritage Capital looks for what he calls "high-flier" or "second-tier" technology stocks severely battered this year but pushing higher. His picks include IBM, which trades at just 14 times forward earnings and offers a sticky revenue base.
Watch CNBC's full interview with Cresset Capital's Jack Ablin
  + stars: | 2022-09-23 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Cresset Capital's Jack AblinJack Ablin, Cresset Capital CIO, joins 'TechCheck' to discuss his thoughts around the strength of the dollar and rising rates, whether gold is a safe haven commodity and what he recommends for the average investor.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailI suspect Treasurys will break before the strong dollar, says Cresset Capital's Jack AblinJack Ablin, Cresset Capital CIO, joins 'TechCheck' to discuss his thoughts around the strength of the dollar and rising rates, whether gold is a safe haven commodity and what he recommends for the average investor.
What started off as a third-quarter rebound has turned into a flop for tech investors. The central bank took its federal funds rate up to a range of 3%-3.25%, the highest it's been since early 2008, following the third consecutive 0.75 percentage point move. Meanwhile, as rising rates have pushed the 10-year treasury yield to its highest in 11 years, the dollar has been strengthening. That makes U.S. products more expensive in other countries, hurting tech companies that are heavy on exports. "This is a one-two punch on tech," Jack Ablin, Cresset Capital's chief investment officer, told CNBC's "TehcCheck" on Friday.
Stocks tumbled on Tuesday as the sell-off on Wall Street mounted and investors braced for another large rate hike due out Wednesday from the Federal Reserve. The Federal Open Markets Committee began its two-day policy meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools. Rates marched higher as equities fell, with the yield on the 2-year Treasury note notching a fresh high dating back to late 2007. Tuesday’s move followed a choppy trading session that saw stocks rise in the afternoon and snap a two-day losing streak.
FedEx rattled the market after it withdrew its full year earnings guidance Thursday, warning about global softness in its delivery business. After the CPI, markets shifted to price in an even more aggressive Fed rate hiking path. Fed ahead In the week ahead, there are just a few data releases, but they will provide an important window into how the housing market has been coping with the Fed's rate hiking cycle. "Good economic data has been bad for the market, but we haven't seen bad economic data be good for markets. After the CPI release, the futures market for fed funds priced a big jump higher in the terminal rate, or end point where the Fed stops hiking.
The dollar's record rally is wreaking havoc on some of the biggest companies in the world this earnings season. Morgan Stanley's Michelle Weaver said in a note to clients this week that the dollar's rally presents a headwind to earnings for U.S. companies, which make roughly 30% of sales abroad combined. Technology stocks are among the biggest behemoths so far to report headwinds from the dollar's strength this earnings season. Meanwhile, consumer discretionary names like Hasbro and Mattel are also feeling the pinch from the dollar's rally. While companies remain cautious going forward, some analysts and big investors also believe the dollar's rally has already shown signs that it's rolling over.
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