Opinion: Market instability replaces inflation as the biggest risk, raising the chances of a pivot by the Federal Reserve

Market instability is the biggest risk to central banks globally, replacing inflation, owing to massive amounts of leverage. So far, the US Federal Reserve is fortunate because there’s low volatility in the stock market SPX, -2.11%, even though there’s a bear market. Market stability affords the Fed the space needed for the most aggressive rate-hiking … Read more

Why a rising 10-year Treasury yield is rattling financial markets as it nears 4%

The 10-year Treasury yield, a vital benchmark that influences a vast array of consumer borrowing costs, is on its way to hitting 4% for the first time in at least 12 years — a development that’s starting to ripple across financial markets. The rate TMUBMUSD10Y, 3.985% soared to as high as 3.988% on Tuesday — … Read more

This ‘single greatest predictor of future stock-market returns’ has fallen sharply — and that’s a bullish sign

CHAPEL HILL, NC – A good chunk of the bull market’s excesses have been worked off, according to the “Single Greatest Predictor of Future Stock Market Returns.” And that’s good news. I’m referring to the indicator, first proposed by the Philosophical Economics blog in 2013, that is based on the average household’s portfolio allocation to … Read more

These 20 stocks in the S&P skidded as much as 21.5% during another brutal week for the market

Another difficult week for US stocks ended with shares of oil producers sliding and Ford Motor Co. tumbling further on concerns over supply shortages. The S&P 500SPX, -1.72% fell 1.7% on Friday for a one-week decline of 4.6%, as investors continued to fret about the Federal Reserve’s interest-rate increases to temper inflation. Among components of … Read more

Brace yourselves, the Fed is about to inflict ‘some pain’ to fight inflation — here’s how to prepare your wallet and portfolio

The Fed is ready to bring the pain. Are you prepared? Weeks ago, Federal Reserve Chair Jerome Powell cautioned there would be “some pain to households and businesses” as the central bank jacks up interest rates to fight inflation that’s higher than it’s been in four decades. Powell and other members of the Fed’s Federal … Read more

‘She never explained anything’: I’m a senior citizen and I lost $100,000 in the stock market this year. Can I sue my financial adviser?

I am a senior citizen and have suffered major losses to the tune of $100,000 in the recent stock market turmoil. Can I sue my financial adviser? I understand the dynamics of the market as far as its ups and downs, and have ridden them out before. However, it’s been different with the market in … Read more

Opinion: This is the best country for retirees

America is a terrible place to retire. At least that’s what global asset manager Natixis reports. In its latest Global Retirement Index, we rank 18th based on “retirement security.” We’re ahead of Slovenia, Malta and Estonia, but the top rankings mostly go to Scandinavian or Germanic countries, along with Canada, Australia, New Zealand, Ireland, South … Read more

‘Some twisted logic about valuation multiples’: Stock-market investors appear complacent as rates rise, warns Morgan Stanley

The stock market has been complacent in the face of rising real yields and expectations for a higher terminal value for the federal-funds rate, moves seen in the bond market following hotter than-anticipated inflation in August, warns Morgan Stanley’s wealth-management division. “You would have expected the stock market to react by lowering valuation multiples and … Read more

Fearing a hawkish Fed? Here’s what’s likely limiting more downside in the stock market, according to JPMorgan’s Marko Kolanovic.

The stock market has been under pressure since the inflation report for August came in surprisingly strong last week, but JPMorgan Chase & Co.’s chief market strategist, Marko Kolanovic, doesn’t see this year’s drop getting much uglier despite a hawkish Federal Reserve . “While we recognize that more hawkish central-bank pricing and the resulting increase … Read more

Why stock-market bears are eyeing June lows after S&P 500 falls back below 3,900

Goodbye, summer bounce. The S&P 500 finished Friday below a crucial chart support level that’s served as a battleground in recent years, leading technical analysts to warn of a potential test of the stock market’s June lows. “Over the last three years, the level on the [S&P 500] with the most amount of volume traded … Read more