It’s CPI day and stock futures are reflecting optimism that economists forecasts will be right and we’ll see a dialing back of inflationary pressures.
“Okay, I can get 5.5% without taking any without taking any risks by putting it in a money market or buying a six-month T-bill. That’s over half of the gain…or maybe approaching two-thirds of the game that I would get over a long term in the stock market without any risks. Is that incremental extra 1/3 worth all the risk that I need to take? A lot of people say ‘no,’ and that’s why you see massive inflows into money-market funds,” says Bianco.
Bianco says in recent years some of the investing population have avoided cryptos and other “sugar highs” — he has referred to the stock market as being diabetic thanks to years of Fed stimulus and zero interest rates. Many of those are retirees who waited 15 years to get a decent return out of income investments.
One fading breed out there? Those hoping for a stock crash so that they can go on a buying spree until the Fed starts printing money and pushing the market higher, says Bianco.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: Newsweek - 🏆 468. / 52 Read more »