The risk of a replay of the lost decade in US stocks

The writer is chief executive and chief investment officer of Richard Bernstein Advisors No economic model would have predicted stocks would be at all-time highs and credit spreads would be very narrow after the Federal Reserve raised its benchmark interest rate by 5.25 percentage points since early 2022. Yet, that is exactly what has happened.

First, the Magnificent Seven’s outperformance might be ignoring the broad improvement in corporate cash flows, whereas narrow credit spreads are correctly accounting for the cyclical upturn. This seems reasonable because the US profits cycle is accelerating and roughly 160 S&P 500 companies now have earnings growth of 25 per cent or more. A second scenario could be that the equity market’s extremely narrow leadership is justified because an apocalyptic credit event is lurking.

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

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

London Stock Exchange becomes Europe's largest stock market againA French election is driving down the value of French listed companies, analysts say
Herkunft: BBCLondonNews - 🏆 115. / 51 Weiterlesen »

Amazon crosses two trillion dollars in stock market value for the first timeAmazon has also been making big investments in AI as global interest has grown in the technology.
Herkunft: Observer_Owl - 🏆 18. / 72 Weiterlesen »

Amazon crosses two trillion dollars in stock market value for the first timeAmazon has also been making big investments in AI as global interest has grown in the technology.
Herkunft: Glasgow_Times - 🏆 76. / 59 Weiterlesen »