The dreaded yield-curve inversion has created the perfect opportunity to profit from a group of stocks Goldman Sachs says the market is ignoring

The 10-year yield has plunged by about 40 basis points since July 31, when the Federal Reserve cut its benchmark interest rate. Amid its slide, equity strategists at Goldman Sachs formulated a strategy to help investors find higher yields elsewhere.

The allure of dividend payers goes beyond higher yields: These stocks are relatively cheap and have underperformed the broader market since the end of the 2008 financial crisis, according to David Kostin, Goldman's chief US equity strategist. "Trade tensions have intensified, economic growth has weakened, and earnings estimates have been revised lower during 2019, but we view swap market pricing as overly pessimistic," he said in a recent note.'The greatest bubble ever': One market expert warns that a relentless bull market is on the brink of crashing and explains how to profit from its demise

What's more, the steep drop in Treasury yields means that their prices have become prohibitively expensive for some investors.

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Bank of America says US stocks are 'on borrowed time' following the latest yield-curve inversionThe silver lining? 'S&P 500 pullbacks associated with recessions during secular bull trends are much less severe,' analysts wrote. Be still, my IRA heart!
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Jim Cramer is not worried about the yield curve, says Warren Buffett is buying bank stocksCNBC's Jim Cramer says the strength of the consumer sector and Warren Buffett's confidence in back stocks are key reasons not to overreact to the yield curve inversion. Jim is an idiot. Pay no attention. The yield curve is nothing and this scare campaigns happened last year for fews days but the this time the funds who caught short yesterday when Trump delayed 10% tariffs decision they found another reason to push the market down and they close the short with profit. jimcramer I'm a lot more concerned about 10yr real yields at 0.0% than the 2s/10s curve doing what the 2s/5s curve has been doing for the last 9 months. yieldcurve
La source: CNBC - 🏆 12. / 72 Lire la suite »