“All of a sudden, we’ve got elevated uncertainty on both valuations and earnings,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “It’s the deep uncertainty in both of the factors that literally we haven’t seen since the financial crisis.”
In his work as a financial adviser, Mr. McMillan said he has reduced equity positions for some clients in recent months because of elevated market volatility and the possibility that interest rates continue to rise. This year’s selloff has had one silver lining: It has left stocks looking cheaper than they have in some time. The S&P 500 traded late last week at 15.7 times its projected earnings over the next 12 months, down from 21.5 times at the end of last year, according to FactSet. And on Thursday, 175 stocks in the U.S. benchmark traded at new 52-week intraday lows, the highest number since the stock market’s mid-June low.
With stocks on sale, many investors are eager to get in at the ground floor of an eventual rally. That means they are focused on any sign of a development that would spark a turnaround—like when the Federal Reserve finally gets to the point of slowing or stopping its interest-rate increases. The trouble is identifying when exactly that move is happening. “Everybody wants to be first in line to call that pivot,” said Michael Cuggino, president and portfolio manager at the Permanent Portfolio Family of Funds. “If the Fed is near the end of its tightening cycle or it may pivot sometime soon, well let’s anticipate that, and the first sign that we see that happening, let’s jump in and buy.
You think so, 🤔🤔🤔
You made so big shit in China and put dirt to chines stocks and others. Wallstreet is not anymore serios information platform. You are traitors of international market. If this is an apology is not enough.
How you can allow to post this on your ad page? boycottWSJ Ramchandaran viswanathan is a culprit who ran away from India and looted many people shame on you WSJ BoycottWSJ
Another market rally starts right after the bear market rally end
It’s probably just random
Other countries admit the facts… USA will suppress until after midterms 🤦🏻♀️ Australia’s economic outlook to be downgraded in budget amid global ‘deterioration’ First-time global recession and Joe Biden is president of USA… scary combo 🤦🏻♀️
“The trouble is identifying when exactly that move is happening. “Everybody wants to be first in line to call that pivot,” Indeed. Unfortunately, no one rings the bell at the bottom, just like no one rang the bell in January when the market started tanking.
Constant wild market swings? If you have ‘spare💰’ to gamble with, judiciously place Puts & Calls simultaneously… you’ll likely profit—one way or the other.
Of course it is. Bitcoin and pricey pandemic tech stocks are just like zero coupon bonds which are highly sensitive to rising interest rates. Expect more selloffs and more pain as long as the Fed keeps jacking up rates to fight inflation.
Who is going to pay investment firms 2-20 after a year like this?
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