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☆ Investors bolting from the market after hawkish Fed speech are being too hasty, Jim Cramer says
▼ + stars: | 2022-12-14 | by ( Krystal Hur | ) www.cnbc.com time to read: +1 min

CNBC's Jim Cramer on Wednesday said that investors exiting the market after Federal Reserve Chair Jerome Powell's hawkish speech on Wednesday are acting too rashly. Stocks fell Wednesday after the Fed raised interest rates by 50 basis points and forecasted hiking rates through next year. We'll get lower numbers — not necessarily a real slowdown, but lower numbers," Cramer said. But that doesn't mean the Fed is losing its fight, he reminded investors. "If Powell felt that things weren't going his way … what he would've done is hit us with another 75 basis point rate hike, not a 50.

☆ December tends to be a strong month for the market. Here's how our stocks have done recently
▼ + stars: | 2022-12-05 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +8 min

So thought we'd look at what the Santa Claus rally phenomenon is all about and which Club stocks have had the best and worth December track records in recent years. It's a seven-day stretch over which the S & P 500 has historically tended to climb. The entire month of December has actually proven to be a historically strong period for the stock market. Investors would surely welcome a strong December after a terrible 11 months for the stock market. The S & P 500 tanked more than 9% that December, which at the time was its worth monthly performance in nearly a decade.

☆ Why the Fed will likely cause an unnecessary recession even though rampant inflation is fading away, according to the chief global strategist for JPMorgan's investing arm
▼ + stars: | 2022-11-08 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

He sees clear signs inflation is fading and says the Fed could achieve a "soft landing." But Kelly tells Insider the Fed seems intent on more interest rate hikes instead. While inflation is the highest it's been in 40 years, Kelly says the Fed should be focused on a shorter timeframe. Last week, according to Kelly, the Fed acknowledged that its recent interest rate hikes were going to filter into the economy over time. That means that they'll remain, recession or no recession, making for a "slow growth, low inflation environment" that is supportive for stocks.

☆ Dollar gains as traders gird for higher U.S. rates
▼ + stars: | 2022-11-03 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

The dollar initially fell on hints in the Fed's statement of smaller hikes ahead, but it was bid after Powell's hawkish stance about the trajectory rates. The Australian dollar fell 0.7% overnight and slipped further to a week-low of $0.6332 on Thursday. "This shall further embolden expectations of policy divergence with a much hawkish Fed relative to other central banks around the world. Japan's yen was notably firm in the face of dollar gains, and has held at 147.90 per dollar, prompting speculation of possible help from official intervention. China's yuan was hovering near record lows in offshore trade at 7.3408 per dollar, and other Asian currencies were under pressure.

☆ Asia shares slip, Fed flags higher rates for longer
▼ + stars: | 2022-11-03 | by ( Wayne Cole | ) www.reuters.com time to read: +3 min

Investors were initially cheered that the Fed opened the door to a slowdown in the pace of hikes after raising interest rates 75 basis points to 3.75-4.0%, by noting that policy acted with a lag. But Chair Jerome Powell soured the mood by saying it was "very premature" to think about pausing and that the peak for rates would likely be higher than previously expected. Futures were now split on whether the Fed would move by 50 or 75 basis points in December, and nudged up the top for rates to 5.0-5.25% likely by May next year. "Higher for longer" was not what the equity markets wanted to hear and Wall Street fell sharply after Powell's comments. Early Thursday, S&P 500 futures were off another 0.3%, while Nasdaq futures fell 0.2%.

☆ Gold ticks higher on dollar pullback; hawkish Powell caps upside
▼ + stars: | 2022-11-03 | by ( ) www.cnbc.com time to read: +1 min

Gold prices edged higher on Thursday, helped by a slight dip in the dollar, although U.S. Federal Reserve Chair Jerome Powell's hawkish remarks limited further gains in zero-yielding bullion. Spot gold rose 0.2% to $1,638.32 per ounce, as of 0118 GMT, after falling 0.8% on Wednesday. Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the non-yielding asset. The European Central Bank "will need additional interest rate increases" to fight off inflation, policymaker Pablo Hernandez de Cos said on Wednesday. Spot silver rose 0.3% to $19.33, platinum rose 0.6% to $935.98 and palladium edged 0.3% higher to $1,860.08.

☆ Banks raise Fed terminal rate forecasts after Powell's hawkish tone
▼ + stars: | 2022-11-03 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

That pushed its fed funds target range to 3.75%-4.00%. That terminal rate forecast came down to 4.96% after the release of the Fed's policy statement. Powell told reporters "it is very premature to be thinking about pausing" in the effort to lift the federal funds target rate. Economists at Nomura, meanwhile, raised their terminal rate forecast by 25 basis points to 5.50%-5.75%. "We have greater confidence in our expectations for a higher terminal fed funds level, with fed funds reaching 5.25% by Q1 of next year and holding that level through 2023," they wrote.

☆ The Fed's last interest rate hike will be in December as it faces political pressure due to a weakening economy
▼ + stars: | 2022-11-03 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The Federal Reserve's last interest rate hike will be in December, according to investment strategist Louis Navellier. Navellier believes a weakening economy will spark tremendous political pressure on the Fed. Investors weighed new language in the FOMC statement against Powell's hawkish speech on Wednesday. Navellier said investors should focus more on the FOMC statement than comments from Powell during his press conference. "I want you to know that the FOMC statement is much more important than the Fed Chairman's doublespeak," Navellier said on Thursday.

☆ The Fed can pivot when these 5 key conditions are met as inflation pressure sets a high bar for cutting rates, economist says
▼ + stars: | 2022-11-03 | by ( Brian Evans | ) www.businessinsider.com time to read: +3 min

The Federal Reserve faces a high bar before it can start cutting rates, according to Comerica Bank. In addition to slower inflation, other conditions must be met as well, chief economist Bill Adams said. That increased inflationary momentum sets a high bar for the Fed to conclude its tightening campaign and an even higher bar to cut rates, Adams added. In particular, he noted that the eventual peak in the fed fund rates may be higher than previously anticipated as inflation has remained persistent. And a key component in today's current high inflation rate is energy, which Adams said would figure into the Fed's considerations.

☆ 4 of our stocks are in the news. Here's the Club's take on each development
▼ + stars: | 2022-11-03 | by ( Jeff Marks | ) www.cnbc.com time to read: +11 min

Four of our Club holdings — Costco Wholesale (COST), Amazon (AMZN), Humana (HUM) and Bausch Health (BHC) — were in the news Thursday. Bausch Health The news: Bausch Health reported third-quarter results before the opening bell Thursday. Given the latter's roughly $4.73 billion market capitalization, Bausch Health's stake is worth approximately $4.2 billion. The reason behind Bausch Health trading consistently below the valuation of its BLCO stake is debt. Secured debt means that Bausch Health has put up assets as collateral, meaning in the event of default the lenders take ownership of the collateralized assets.

☆ Everything you want to know as OPEC+ agrees to cut oil production
▼ + stars: | 2022-10-06 | by ( Hallam Bullock | ) www.businessinsider.com time to read: +7 min

OPEC+ agreed to cut production. But the group — which includes Saudi Arabia, the United Arab Emirates, and Russia — agreed Wednesday to slash daily oil production by 2 million barrels, in a bid to send crude prices higher. But OPEC+ defended their decision, saying it was in response to "uncertainty that surrounds the global economic and oil market outlooks." At a news conference after the meeting, the Saudi energy minister added: "We would rather be pre-emptive than be sorry," the New York Times reports. The country's deputy prime minister, Alexander Novak, said the EU's plan could lead to Russia temporarily cutting oil production further — a move that would see crude prices rise, and gasoline follow.

☆ The chief investment strategist at a $42 billion firm shares 9 stocks that can weather a recession while boosting income
▼ + stars: | 2022-09-25 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +2 min

To build a steady flow of income, he's focusing on firms with high dividends and cash generation. McMahon shared 9 stocks that are both recession-resistant and can boost income streams. "It's going to be a tough, tough battle to get inflation down below 3%," said Brian McMahon, chief investment strategist at Thornburg Investment Management, which manages $42 billion in assets. Because this fund aims to deliver a consistent stream of income to its investors, McMahon particularly emphasizes investing in high-quality fixed income assets and dividend-paying equities. McMahon shared nine stocks for investors to consider that are both recession-resistant and can boost income streams.

Stocks took a beating this week as the Federal Reserve raised interest rates by another 75 basis points, the third consecutive hike of that magnitude. It wasn't the rate move — which was anticipated by the market — but Fed Chair Jerome Powell's hawkish comments on Wednesday that hurt stocks. It was the fifth losing week out of the last six for all the major stock averages, capped by another painful drop on Friday. Also Wednesday, the Federal Reserve raised the federal funds rate by another 75 basis points while maintaining its hawkish tone. ET: Personal Spending and Income (See here for a full list of the stocks in Jim Cramer's Charitable Trust is long.)

☆ A former Point72 portfolio manager turned crypto CIO breaks down why Ethereum's Merge is not a bullish enough catalyst for a market rally right now
▼ + stars: | 2022-09-21 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

Travis Kling is the chief investment officer at crypto asset management firm, Ikigai. The ex-Point72 portfolio manager says crypto markets won't rally until macro conditions recover. The exec breaks down why Ethereum's Merge is not a catalyst for an immediate bull run. Travis Kling, the CIO of crypto asset management firm Ikigai, says the upgrade isn't a catalyst for an immediate bull run or even rally. Although, the Merge is "the most significant catalyst in crypto history" traditional makes are in "turmoil," Kling says.

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