Federal Reserve policy has thrown off a key trend in markets, but Mark Haefele, chief investment officer atWhen stocks rally as rapidly as they have through the second and third quarters, Treasury yields usually jump. Investors shift more cash into stocks and risk assets and pull capital from safe havens like government debt, in turn boosting yields. Yet Treasurys sit at historic lows while economic data improves and stocks touch new records.
The shift arrived in June, when Fed Chair Jerome Powell said at the month's Federal Open Market Committee meeting that the central bank was "not even thinking about thinking about raising rates." The statement is "perhaps the moment investor expectations really changed," Haefele said in a letter. Yields disconnected from stocks and trended downward. Apart from a mild gain in August, they've steadily declined through the summer.
"Investors now face a stark choice," the investment chief said. They can either hold on to precedent and view the bond market's pricing as a harbinger for a stock market correction, or believe markets are now "more heavily influenced by Fed policy" and pile in accordingly. "If you, like us, believe that the latter currently reflects reality better than the former, your focus needs to shift to what the Fed is saying, and the way you think about asset prices needs to shift with it," Haefele said.
Another way to put this.. Trump pressuring Fed to keep rates low gives artificial stability to investors to allow for short term gains. This is a con like realDonaldTrump the Kodak deal. RBReich Pls..go one of ur amazing this is how it really is videos..
then fell market always correct itself
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:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside Britney Spears' conservatorship and the #FreeBritney movement - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. It sounds like her parents are living large off her misery and have her locked up to keep her from emancipating her wealth from them 🤬🤬🤬
Source: BusinessInsider - 🏆 729. / 51 Read more »
Take a look inside a historic Missouri house with nine jail cells - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. This would be a great house for those in the family that refuse to quarantine. 🤣
Source: BusinessInsider - 🏆 729. / 51 Read more »
Look inside President Trump and Larry Ellison's relationship - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. what's going to happen to these corrupt deals when Trump is defeated.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Inside Sunrun and Vivint Solar's historic $3.2 billion deal - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Gold shortages are here and increasing. Sandstorm Gold is going to have INCREDIBLE cash flow for next decade. $1800+ Gold spot price certainly does not hurt!
Source: BusinessInsider - 🏆 729. / 51 Read more »
Stock market crash: Wall Street CEO warns on Fed, day trading risks - Business Insider'Unintended detrimental consequences': A former Wall Street chief strategist says the Fed has driven flimsy stock-market highs that will come crashing down — and warns bullish day-traders will be futile to stop it They’ve been saying this for 5 months. They’ve been saying this since 2009. (...Well...I’ve been saying that since 2009...it’s been fun. I’ll see myself out now.)
Source: BusinessInsider - 🏆 729. / 51 Read more »