Investors Face a World Where Stocks No Longer Reign

The age-old mantra of ‘there is no alternative’ to stocks gets a stiff test as market losses mount, inflation accelerates and interest rates rise

Holding cash is incredibly popular with Wall Street today. This is a major sea change from the way professional asset managers have behaved over the last decade. WSJ’s Dion Rabouin explains why cash is no longer trash. Illustration: Adele MorganFor years after the 2008-09 financial crisis, interest rates were so low that many investors argued that to get a decent return, you had to put a hefty chunk of your portfolio in the stock market.

The Federal Reserve has turned that dynamic on its head. The central bank, determined to rein in inflation, has begun what could be its most aggressive campaign of interest-rate increases since the 1980s. Investors expect the Fed to bring rates to around 3% by early 2023 from near zero at the start of 2022. Once-loved stocks, as a result, have tumbled to multiyear lows.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Opinion: As local tech companies lose steam, will San Francisco’s economy also slow? - The San Francisco ExaminerOPINION: Given that remote work is becoming the norm in the industry our tech-driven commercial real estate and service industry boom times might be slowing or even ending.
Source: sfexaminer - 🏆 236. / 63 Read more »

Analysis: Wall Street ‘fear gauge’ offers no silver lining as bear market loomsA surprising lack of panic in the U.S. stock market as measured by Wall Street’s 'fear gauge' is keeping some investors from calling a bottom on an already bruising equity selloff.
Source: Reuters - 🏆 2. / 97 Read more »

Stocks end higher Friday, but Dow books worst 7 weeks of declines in two yearsU.S. stocks finished higher Friday, but with the Dow still ending a seventh week in a row lower, as investors worried about the Federal Reserve's ability to... Hopium bounce 😢
Source: MarketWatch - 🏆 3. / 97 Read more »

Apple is no longer the world's most valuable public companyApple has lost the title of the world's most valuable publicly-traded company to oil firm Sudi Aramco. Apple is still valued at $2.31 trillion. *Saudi
Source: PhoneArena - 🏆 322. / 59 Read more »