This long-time bear warns of a 'trapdoor' situation looming for the stock market.

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

Our call of the day says this stock market is not proving great for the short or long term right now.

Uncertainty is lingering for investors following a recent mixed batch of data — softer-than-expected inflation, stronger-than-anticipated jobs and wages — as we kick off the third week before Christmas.

The manager says he’s finding it hard to get constructive on these “overvalued markets with ragged and divergent internals” — conditions that he notes were seen at 2000, 2007, and 2020 market peaks. That’s even as they’ve come off the extreme levels seen at the beginning of 2022 when interest rates were at zero, he said. Hikes since then mean yield-seeking speculation has pared back, leaving the “equity market at speculative valuations, but without the support of speculative pressures,” said Hussman.“In our view, steep market losses generally reflect risk-aversion meeting a low-risk premium.

The markets Stock futures ES00 YM00 NQ00 are falling, along with Treasury yields TMUBMUSD10Y TMUBMUSD02Y and the dollar DXY is a touch weaker. Crude prices CL.1 are higher after OPEC + left production levels unchanged and a $60 per barrel Russian price limit agreed by the EU and G-7 kicks in. Credit Suisse CS shares rallied on a report Saudi Arabia’s crown price wants to invest in an investment bank spinoff.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Stagflation.

A lot of younger investors say 40 and under, maybe 45 and under. I have a limited view of what has happened over 100 years. And lived in a lot of their lives with zero interest rate. Include the Talking Heads✅

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

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.

Asian Stock Market: China soars on easing Covid curbs, oil loses strengthMarkets in the Asian domain are displaying mixed responses as the risk impulse is turning precautionary ahead of US ISM Services PMI data. S&P500 futu
Source: FXStreetNews - 🏆 14. / 72 Read more »