Stockmarket comes out to play as Fed calms bond market nerves

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 90%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The dash for trash that the Fed unleashed is justified by a dampening of interest rate volatility. Beware, it could reemerge.

Precisely one decade ago, I was fortunate enough to be in the audience at Columbia University’s annual value investing conference, where several legendary investors recounted their investment journeys., he and his team had an idea to sift through all the beaten up tech stocks to identify which ones traded below their net cash balances and buy them.

These moves follow a strong month for all things speculative from Bitcoin, to Cathie Wood’s ARK Innovation exchange-traded fund, to Tesla, all of which are up sharply so far this year.Those moves have scorched short sellers and served as a reminder that while markets can indiscriminately sell, they can also engage in indiscriminate buying. For the time being, there is no reward for doing one’s research.

But what is perhaps underappreciated is that it is the volatility in interest rates, rather than the absolute level, that has been the most destructive force for asset prices.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
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:

 /  🏆 2. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US stocks lower as Fed decision awaitedShares in New York were lower in morning trade amid broad selling. US interest rate decision expected at 6am AEDT. ASX futures slip.
Source: FinancialReview - 🏆 2. / 90 Read more »