Before hastily selling stocks that have shown poor performance over the year, consider this: they often experience a significant resurgence in January. This occurrence is a result of two distinct sources of artificial selling pressure unrelated to a company’s fundamentals or earnings potential. The impact of these pressures diminishes by...
The recent surge in U.S. government bond yields, pushing the 10-year Treasury rate to nearly 5%, a level not witnessed in 16 years, has created a challenging environment for investors in the stock market. The 10-year Treasury yield, represented by BX:TMUBMUSD10Y, reached its highest point since 2007, nearly touching the...
The CBOE Volatility Index, or VIX, is widely recognized as a fear indicator for the market and is currently emitting an unusual signal that hints at a possible downturn in stocks. This situation reflects heightened concerns about the stock market’s trajectory, influenced by worries about a looming recession, turbulent bond...
This year, the renowned 60:40 portfolio is outperforming last year’s performance, living up to expectations. This classic allocation, commonly favored by retirees and those nearing retirement, divides investments with 60% in stocks and 40% in bonds. While it faced a challenging year in 2022, experiencing one of its worst calendar-year...
On Friday, U.S. stock index futures suggested a challenging day ahead for Wall Street, as investors grappled with the impact of rising bond yields and ongoing geopolitical tensions. Additionally, investors were carefully considering remarks made on Thursday by Federal Reserve Chairman Jerome Powell. Here’s the current market situation: In the...
On Wednesday, there was a continuation of the upward trajectory in Treasury yields, with the 10-year Treasury yield reaching 4.9% for the first time since 2007. This surge in yields had a corresponding impact on stock markets, causing a decline in their value. Historical data suggests that as we approach...
