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.
Philippines Philippines Latest News, Philippines Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BBCLondonNews - 🏆 115. / 51 Read more »
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.
Source: Observer_Owl - 🏆 18. / 72 Read more »
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.
Source: Glasgow_Times - 🏆 76. / 59 Read more »