- Wirehouses Recommend Buying the Dip amid Market Pullback “Wells Fargo has been instructing advisors to slowly trim their positions in technology and communications equities and put the cash into short-term Treasurys, Wren said. The wirehouse perceives the current market pullback as an opportunity to eventually redeploy funds into equities with long-term growth potential." (FundFire)
- The popular ‘carry trade’ is unwinding — and economists fear Fed rate cuts could make matters worse “Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere. The trading strategy has been hugely popular in recent years.” (CNBC)
- A Key to Surviving the Global Market Selloff: Be Lazy “Market turmoil is unsettling. But if history has taught us anything, it’s that market volatility is an inherent part of investing and doesn’t matter too much for long-term investors.” (Morningstar)
- Volatility is a feature of investing, not a bug “Following a battery of high-profile economic data releases last week, the risk pendulum has swung rapidly from sticky inflation concerns to impending recession. But we encourage investors to not miss the forest for the trees. Historically, the average year that ends with a gain in the market comes with an 11% peak to trough decline. And today, we are approximately 8% below all-time highs.” (JP Morgan)
- The Next Episode for Jobs, Inflation, and the Fed “The downside is that the cracks under the labor market's surface we have been monitoring are widening. From an inflation perspective, the upside is that it's getting harder to see where upward pressure on prices is going to come from. An increasingly soft labor market is consistent with slower wage growth, slower spending, and disinflation.” (Charles Schwab)
- A September Fed Rate Cut Looks Likely. Then What? “With that in mind, the Fed’s latest commentary is probably the clearest forthcoming signal that it’s likely to cut in September. This meeting’s official statement included new language that ‘the committee is attentive to the risk to both sides of its dual mandate,’ whereas prior statements focused on ‘inflation risks.’ Perhaps most importantly, markets now assign a near-100% probability of a rate cut in September, according to CME FedWatch. Powell made no attempt to gainsay such predictions.” (Morningstar)
- Trump Trade, Harris Trade or Just an ETF Trade? “U.S. energy policy seems to always be on the ballot, and the two main political parties disagree in many ways regarding the right balance of fossil fuel and alternative sources. That means that single country ETFs representing oil-rich nations will probably be affected by what happens in November. Saudi Arabia would be an obvious spot to look.” (ETF.com)
- REITs Post Third Straight Month of Positive Returns in July, Outperform Broader Markets “The All Equity REITs index is up 28.0% since Oct. 19, 2023, when the yield on the 10-Year Treasury hit 4.98%. On a year-to-date basis, the index has returned 4.8%. Since October 2023, the Dow Jones U.S. Total Stock Market is up 30.6% and the Russell 1000 is up 30.3%. In 2024, the Russell 1000 is up 15.9% and the Dow Jones U.S. Total Stock Market is up 15.7%.” (Nareit)
- Blackstone, Cliffwater Grab Huge First-Half Sales in Advisor Market “Blackstone, Cliffwater and other sponsors of alts products tailored for the U.S. advisor market saw a big sales burst in the first half this year – in some cases approaching their full-year 2023 totals – thanks to a strong appetite for private credit and the rapid adoption of new private equity and infrastructure-focused strategies.” (FundFire)
- Billionaire Ackman pulls IPO of Pershing Square USA days before debut “Billionaire investor Bill Ackman scrapped the launch of Pershing Square USA on Wednesday, days before the fund was slated to begin trading on the New York Stock Exchange. Ackman downsized the initial public offering (IPO) plans just a day earlier for the second time in a week, having seen at least one prominent pledged investor back out and undergoing a fresh bout of regulatory scrutiny.” (Reuters)
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