End of year meeting? The equity market’s bullish pattern is set to collide with fears of stagflation

The period between now and the end of the year marks a historically bullish end of the year for US equities, particularly just before and after Christmas. The question for investors is whether favorable seasonal factors will be offset by economic fundamentals. The momentum towards a year-end stock race only seems to be strengthening now … Read more

The bottom hasn’t arrived yet: here are five reasons why US stocks could continue to suffer well into next year

With the S&P 500 trading above 4,000 and the CBOE Volatility Gauge, known as the “Vix” or Wall Street “fear gauge”, VIX, +1.08% having dropped to one of its lowest levels of the year, many Wall Street investors are starting to wonder if the lows have finally arrived for stocks, especially now that the Federal … Read more

What were Elon Musk’s lenders thinking?

When Elon Musk sought funding for his bid to take over Twitter earlier this year, he had little trouble finding institutions willing to give him the money he needed. Morgan Stanley took the lead and organized a syndicate of banks, including Bank of America and Barclays, which pledged to lend Musk $13 billion. The whole … Read more

US shares edge up slightly in midday trading as investors evaluate economic data, await Fed minutes

US stock indexes trimmed gains in midday trading on Wednesday as investors digested a slew of economic data and awaited the final minutes of the Federal Open Market Committee meeting. How are stock indices traded? The Dow Jones Industrial Average DJIA, +0.34% rose 5 points, or less than 0.1% to 34,104 The S&P 500 SPX … Read more

This is not a “close your eyes and buy something” kind of market.

Bond portfolios have fallen deep into the red this year as the Federal Reserve raised rates to fight stubbornly high inflation, spurring an epic banded repricing of the $53 trillion US bond market. Debt is no longer cheap for households, businesses or the US government to borrow. And without the jet fuel of easy credit, … Read more

Did Bullard undershoot? Stifel economists say the federal funds rate may need to rise to 8% or even 9%.

A day after a Federal Reserve official’s market admission that interest rates may need to go up to 7%, analysts came to an even more startling conclusion: that 7% still isn’t high enough to win the fight against inflation. In a presentation Thursday in Louisville, Ky., St. Louis Fed Chairman James Bullard estimated that a … Read more

Opinion: Opinion: What Bullard got wrong about a 7% Fed Fund (and why he said it anyway)

An influential Federal Reserve official briefly spooked SPX stock, +0.48% and TMUBMUSD10Y bond, 3.824% on Thursday warning that the central bank may have to raise interest rates much more than the market expected. But the official omitted some important information that undermined his argument and suggested that the market was probably right in the first … Read more

Opinion: The locks are open to grandparents for large college savings for grandchildren

If you’re a grandparent trying to save the day by helping your grandchildren pay for college, take a second look at a tax-advantageous 529 college savings plan before the end of the year. Changes to the rules for federal financial aid calculations in 2023 mean that new investment opportunities are open for family members to … Read more

FTX bankruptcy, Meta layoffs: Stock investors could whistle over the graveyard

Investors dizzy with last week’s sharp rise in stocks may want to hear Tom Waits ‘song, “Whistlin’ Past the Graveyard” from 1978, to dispose of the dangers still lurking ahead. The surge in stocks catapulted the S&P 500 SPX index, + 0.92% TO SPY, <bg-quote field=”percentchange” format=”0,000.00%” channel=”/zigman2/quotes/209901640/composite” class=”positive”>+ 0.97%</bg-quote> it nearly returned to 4,000 … Read more