Wealth Management – Page 11 – Digital Finance Analytics (DFA) Blog

Warnings That Shook The Markets!

The S&P 500 and the Nasdaq finished in the red on Tuesday as worries that aggressive moves to curb decades-high inflation might tip the U.S. economy into recession dampened investors’ risk appetite.

All three major U.S. stock indexes pared their losses in afternoon trading, with the blue-chip Dow turning positive. Even so, the S&P 500 ended just 2.2 percentage points above confirming it has been in a bear market since reaching its all-time high on Jan. 3.

The Dow Jones Industrial Average rose 0.15%, to 31,928.62; the S&P 500 lost 0.81%, to 3,941.48; and the Nasdaq Composite dropped 2.35%, to 11,264.45. The volatility index rose 3.41% to 29.45.

Six of the 11 major sectors of the S&P 500 ended the session in negative territory, with communication services and consumer discretionary suffering the biggest percentage losses.

“As we step back and acknowledge the primary market catalysts, it’s really been about the Fed pivot and the change in interest rates, which have influenced prices across the capital markets,” said Bill Northey, senior investment director at U.S. Bank Wealth Management in Helena, Montana.
“In the last two weeks, we’ve seen some degree of macroeconomic deterioration starting to be manifested in corporate earnings and economic releases.”

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The Bears Are In Charge…

The latest from the markets show the bears are running the show. It is not pretty.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Whipsaw Market Weekly Update

The latest edition of our finance and property news digest with a distinctively Australian flavour.

In our weekly review, we reflect on a chaotic week in the markets, from stocks, to crypto, even as stocks rallied at the end of the week in financial markets thanks to Federal Reserve Chair Jerome Powell’s reassurance that bigger rate hikes would be off the table for now even after the hot inflation readings of the past few days. Separate comments from San Francisco Federal Reserve president Mary Daly also backed half-percentage point rate increases at each of the central bank’s next two meetings. There is a clue to why we are seeing so much craziness.

After sinking almost 20% from a record and flirting with a bear market, the S&P 500 saw a broad-based rally on Friday. It still posted a sixth straight week of declines — the longest losing streak since June 2011. The NASDAQ 100 outperformed amid a rally in giants like Apple Inc., Microsoft Corp. and Amazon.com Inc.

Meanwhile, Elon Musk caused chaos over his takeover offer for Twitter Inc., first claiming his bid was “temporarily on hold” and then maintaining he’s “still committed” to the deal — sending the social-media giant into a tailspin. Tesla Inc. jumped. Treasuries fell with the dollar.

Despite the strong gains on Friday, many traders aren’t yet convinced that equities have reached a bottom after a selloff that shaved $10 trillion from US stock values in 18 weeks. Instead, they say investors should still brace for volatility as the Fed’s ability to fight price pressures without causing a hard landing may depend on factors outside the central bank’s control. Frankly forecasting is a mess.

Back in January, stock strategists known for their enduring optimism expected the S&P 500 to add 5% in 2022.Bond strategists weren’t any more prescient. Interest rate strategists and economists were calling for 10-year Treasury rates to rise to 2% by June. Yields took out that level in early February and have touched 3.2% this month.

Go to the Walk The World Universe at https://walktheworld.com.au/

Pick Your Landing: Hard or Soft?

In today’s weekly review we look at the markets and muse on whether the inflation and rate adjustments driven by changes in Central Bank policy will precipitate a soft or hard landing. Some say the U.S. Federal Reserve’s effort to tame inflation with aggressive interest-rate hikes mean that a recession is inevitable, leading to a plunge in stock prices this year. Others, like Jeremy Zirin, senior portfolio manager and head of private client U.S. equities at UBS Asset Management says a soft landing is still possible. Possible yes, but is it plausible we ask?

What we do know is that the S&P 500 Index fell for a fifth consecutive week, which its longest losing streak in more than a decade, after April’s US jobs data bolstered the case for the Federal Reserve to continue to lift interest rates.

And the Dow posted its sixth-weekly loss Friday, as a better-than-expected monthly jobs report kept fears about an inflation-led slowdown in the economy front and center at a time when expectations of more aggressive Federal Reserve policy tightening continue to heat up.

Go to the Walk The World Universe at https://walktheworld.com.au/

Leaky Boats – After A Bruising April: May May?

In this week’s market review we look at the action around the world, starting in the US, Europe Asia and Australia, and looking at Gold, Oil and Crypto in passing.

The news is not good, for those believing in a return to Bull markets, supported by a Fed Put. Actually, with inflation running hard, Central Banks will lift rates, and as yet markets are not fully pricing the risks of this change. Why would they, as there are many who profit from transaction, any transactions, so of course they are talking their book. Hope that the Fed can lift rates to counter persistently high inflation without tipping the US economy into a recession are fading, further fraying market sentiment.

CONTENTS

0:00 Start
00:15 Introduction
1:00 Earning Season
1:50 Sentiment Surveys
2:54 US Growth and PCE
5:57 US Markets
9:20 Monetary Policy
12:50 Oil
13:15 Gold
16:10 Silver
18:20 UK Home Values
21:08 Europe
22:27 Asia
25:35 Australia
28:25 Crypto
30:29 Conclusion And Close

Go to the Walk The World Universe at https://walktheworld.com.au/

Down, Down Markets Are Down!

Wall Street ended sharply lower on Tuesday, with the NASDAQ closing at its lowest since December 2020 as investors worried about slowing global growth and a more aggressive Federal Reserve.

China’s COVID-19 led lock-down and an aggressive pivot by major central banks to fight inflation have overshadowed what has been a better-than-expected quarterly earnings season so far. Specifically, the fear spreading through financial markets reflects lower growth projections for China, the world’s second largest economy.

“I think with where the market is right now, in this indiscriminate selling and fear phase, I think you’ve got more potential for downside risk than you have for an upside surprise”

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Markets Are In Turmoil Again!

The latest edition of our finance and property news digest with a distinctively Australian flavour.

European stocks slid to a one-month low and commodity prices dropped on Monday on renewed concerns about rising interest rates and China’s sputtering economy, while Wall Street shares rose, reversing losses after Twitter agreed to be bought by billionaire Elon Musk.

Fears over China’s COVID-19 outbreaks spooked investors already worried that higher U.S. interest rates could dent economic growth. U.S. shares were lower throughout most of the session, extending last week’s sharp declines.

The Dow cut losses to close higher Monday as dip-buying in tech stocks ahead of a crucial week of quarterly results for big tech steadied the broader market just as global growth worries returned.

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live Q&A 8PM Sydney Damien Klassen: Investing Now

Join us for a live discussion as I explore the latest in market trends with Damien Klassen from Walk The World Fund and Nucleus Wealth. Given the current market gyrations, there will be plenty to discuss!

You can ask a question live.

Go to the Walk The World Universe at https://walktheworld.com.au/