The semis are sending an important signal to the bond market: JP Morgan

Yields have tumbled over the past month as a dovish Federal Reserve and weak global data kept demand for bonds alive.

Jason Hunter, head of global fixed income and U.S. equity technical strategy at J.P. Morgan, expects yields to make a comeback into the summer and is finding proof in an unexpected corner of the market. "Semiconductors 12-month performance leads PMI and they stay very correlated, not just in this cycle but if you go back to the late 1990s. That relationship has been around for a long while," said Hunter."Look back at summer 2016. What you see is the semiconductors year-over-year growth bottoms out early on in the year and then PMIs bottom out a quarter later so basically lagging.

This year, the SOXX ETF's rate of change found a bottom in January before the trend turned upward. Its price moves have also outperformed the market – the SOXX ETF has surged 28% in 2019, nearly double the S&P 500.

Yes if my dog pisses more than 3 times in the backyard on a Thursday this also correlates to the bond market in the Inverted yield

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

JP Morgan's market guru says S&P could hit his year-end target of 3,000 next monthTop J.P. Morgan strategist Marko Kolanovic predicts new highs ahead for the stock market. Guruleaks1 Ok
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »

JP Morgan: Chinese investors are bullish on global stocks — at least for nowChinese investors are bullish on global equities this year, and see the world economic slowdown as a bigger worry than the trade war, according to survey results by J.P. Morgan Asset Management.
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »

Cramer: 'We're in trouble' if JP Morgan's stock doesn't rally when it reports earnings'If that stock doesn't go up when it reports we're in trouble,' CNBC's Jim Cramer says. That is your first clue? You’re in trouble. jimcramer never will I be associated with TEAM We're $rvn $flo
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »