Will Global Market Sell-Off Dethrone US Stocks’ 2024 Leadership?

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 47 sec. here
  • 4 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 53%

Vanguard Total Stock Market Index Fund ETF Shares Nouvelles

United States 10-Year,Vanguard Total Bond Market Index Fund ETF Shares

Stocks Analysis by James Picerno covering: Vanguard Total Stock Market Index Fund ETF Shares, United States 10-Year, Vanguard Total Bond Market Index Fund ETF Shares. Read James Picerno's latest article on Investing.com

for the US labor market, the surge in risk-off sentiment took a bite out of the high-flying market for American shares.by a wide margin. In the current climate, however, that premium suggests US shares are still vulnerable to a period of “normalizing” performance comparisons.

The gap between US stocks and other asset classes, however, is closing. As recently as early July, for example, US shares were outperforming US bonds (US 10-year Treasury yield The unusually wide premium in US stocks vs. US bonds in recent years was always susceptible to normalizing, but for a variety of reasons a high premium persisted. The question is whether we’re looking at a new period of market rebalancing. No one knows for sure, but looking at history offers some perspective for managing expectations.

By some accounts, a “normal” risk premium is somewhere in the 3%-8% range, although debates rage about exact numbers. TheThe risk premium has looked excessive in recent years. Meanwhile, Mr. Market, it seems, never gets it exactly right in real-time, leaving wide swings as the only constant through time. That implies that the unsustainably high-risk premium of recent vintage may give way to its counterpart.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 450. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Time to Rebalance? Global Markets Offer Better Prospects Over US StocksStocks Analysis by James Picerno covering: . Read James Picerno's latest article on Investing.com
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Is the Recent Surge in Stock Market Volatility Noise or Sign of What's to Come?Stocks Analysis by James Picerno covering: S&P 500, CBOE Volatility Index. Read James Picerno's latest article on Investing.com
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Will a Goldilocks Economy Keep the Stock Market Humming?Stocks Analysis by James Picerno covering: S&P 500. Read James Picerno's latest article on Investing.com
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Stocks Look Overbought, But Will It Matter Anytime Soon?Stocks Analysis by James Picerno covering: S&P 500, CBOE Volatility Index. Read James Picerno's latest article on Investing.com
La source: Investingcom - 🏆 450. / 53 Lire la suite »