Stock market analysis: Why a strong economy is bad news for equities

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Canada News News

Why the resilient US economy is making it difficult for stock investors to thrive

in January, a higher-for-longer approach for interest rates looks increasingly likely.

But here's the catch: while a humming economy foreshadows more Fed hawkishness, that strength could save the US from a severe recession. Two recent data points stand out when probing for answers about the state of the US economy. The first is January's monster jobs report.The second is consumer health, reflected in January's retail sales and consumer spending data, both of which exceeded estimates.

Either way, the stock market doesn't seem to care. All investors can see is higher rates, which inflict the double whammy of eating into corporate earnings and making other investments more attractive compared to relatively high-risk equities.

 

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

Someone explain why these types of investors are a good thing? It's so weird to read a piece saying that the economic recovery is a really bad thing for some. Seems really gross, frankly, to have a position that makes tons of money when everything is on fire for everyone else.

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:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines

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

Why stock market rally could keep going: Doug Ramsey, Leuthold GroupHere's why it makes sense that stocks are rallying as rates rise and a recession approaches, and what to own because they could keep going, according to research firm Leuthold Group.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Domino's stock tumbles 11% as delivery problems persist | CNN BusinessDomino's delivery problems aren't over. Little Ceasars offers a good deal with the hot n ready The dominos in my home town was great. The one near me now sucks. Food is very inconsistent and they mess up orders all the time. The food may be cheap but that doesn't mean it's quality or worth the money. the EVs?
Source: CNN - 🏆 4. / 95 Read more »