Here’s why the Fed halted market recovery
Good morning, opening bell crew. I’m Phil Rosen, and I’m happier this morning – not because it’s no longer Monday, but because
It kicks off today. If high inflation has you looking for deals, you can check out our live Insider updates here.
Now for the real reason we’re all here – below, I’ll explain how the world’s largest money manager is not dependent on economic recovery, and why the Fed is to blame.
In addition, the dollar and the euro reached parity for the first time in 20 years. When the pair was less than a penny away from parity, I stopped by The Refresh from Insider to explain how the coins got to that level.
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1. BlackRock says the Fed is likely to halt the economic recovery. The company warned on Monday that this means that market volatility will only continue.
Policymakers are mishandling inflation by using interest rate hikes to tackle snags from production constraints, and more turmoil awaits, analysts wrote in their mid-year report.
The resumption of economic activity, for example, is likely to stifle the resumption of economic activity — and will only change course when the damage appears, the report said.
In both stocks and bonds, we think.”
Instead of a period of steady growth and inflation, analysts said the US is entering a brave new world of risk and uncertainty.
Goldman Sachs, either, doesn’t seem keen on a stock rebound. Investors have survived a large part of
Indeed, but there is still room for indexes to fall through.
The bank’s chief global equity strategist, Peter Oppenheimer, confirmed that stocks haven’t yet reached the full 30% drop that these types of bear markets usually give.
Oppenheimer added that tech stocks in particular did not find a bottom, given that their current valuations are still above their long-term averages.
In other news:
2. US stock futures fell early TuesdayWith price pressures fueling the COVID outbreak in China, economies around the world slow down
Fears. Meanwhile, oil extended its losses and bitcoin fell back below $20,000. Below are the latest market moves.
3. On the agenda: PepsiCo Inc, HCL Technologies, and Burberry plc, all reports.
4. Goldman Sachs analysts have named a group of stocks they would like to have because of their strong dividend and yield growth. Stocks are in a bear market right now and the risks of a recession are on the rise. Look at the bank’s 50 companies that are showing promise even as the market is seeing its worst start in a year in five decades.
5. Russia launched new chartered ships to trade goods with China and India. Wartime sanctions imposed by the West have hit model supply chains, so Moscow’s new shipping lanes are meant to make it easier for countries to move goods. Since the start of the war in Ukraine, neither China nor India has condemned the invasion.
6. Charlie Munger personally backed an investor seeking to build Berkshire Hathaway in Australia. Longtime business partner of Warren Buffett has done so even though he rarely trusts anyone except the Oracle of Omaha to manage his money. Munger praised the investor’s focus on fundamentals, rational mind and high ethical standards.
7. Twitter lawyers say Elon Musk’s attempt to divest his $44 billion takeover is “null and illegal”. In a letter to Musk’s lawyers, Twitter’s lawyers said that retracting the deal “constitutes a repudiation of their obligations under the agreement.” After Musk’s efforts to walk out of the deal, Twitter shares fell 11.3% on Monday, their biggest one-day drop in more than two months.
8. Two economists explain why these cities are overvalued as house prices stabilize across the United States. The Florida-based experts said the market will eventually calm down, but they caution that home costs are still too high in many places. They broke their list of 13 cities.
9. These thirteen stocks have the most dramatic upside at the moment. As stocks slowly recover from a bear market slump, some names stand out, according to Goldman Sachs. Here’s what analysts are looking at — including eight stocks that could more than double in value over the next year.
10. The economy is showing signs that inflation may have peaked, But that doesn’t mean things will go downhill right away. The trend, known as falling inflation, means that prices will continue to rise broadly, at a slower pace. Immerse yourself in the numbers.
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Curated by Phil Rosen in New York. (Notes or tips? email@example.com or tweet Tweet embed).