Bullish stock investors have gotten punched in the month so far this week, after a relatively cheery kickoff to 2023 following an ugly 2022.
Although the Nasdaq is up 3.7%, the S&P 500 has gained 1.6% and the blue-chip Dow has edged up 0.5% in 2023, Wood said Thursday there’s a key factor that may be holding back investors and markets.The U.S. central bank has been pushing up benchmark interest rates in an effort to quash inflation, which in turn has quelled the purchases of speculative assets.
Indeed, U.S. wholesale prices sank 0.5% in December, marking the biggest decline since April 2020, when the U.S. economy was first stricken by the COVID pandemic. Bond yields, which fall as prices increase, have been acting as if the Fed may be ready to end its rate increases. Yields tend to rise as investors sell debt and prices fall in anticipation of higher rates on newly issued Treasurys.“We’re very happy to see bond yields going down here,” Wood said Thursday during a quarterly seminar held for followers and investors of her ARK Invest suite of funds.
Would help if the government stopped printing money else what choice does the Fed have other than to counter the rampant inflation that plagues the nation.
Inflation is not close to being under control. Interest rates will go a lot higher. The government can’t print trillions of dollars and expect just a mild inflation. The Fed can’t stop yet.
I will never listen to financial advice from Kathie Woods or Cramer ever. They are both bankster shills.
Selling
With 13% inflation, doesn't that mean the devaluation of the $$$..? And every currency tagged to the $$$. inflation federalreserve WeThePeople USA
yup
Yeah, but there are still a lot of companies that had no revenue, no product, and insane valuations. Great companies like SPX LockheedMartin, etc, with dividends, are still chugging along.
😆
I’m waiting for Russia to withdraw from Ukraine
Will the last person too listen to Cathie Wood, please turn out the lights...