“Painfully slow capitalization”: why investors keep getting inflation wrong

A brutal third quarter in financial markets ended Friday and one thing is extremely clear: inflation is the most important factor driving asset valuations right now and yet few, if any, people are able to predict with accuracy where it is likely to go. The reason? According to BofA Securities global economist Ethan Harris, professional … Read more

Opinion: Rate hikes are scaring the market, but equity investors are focusing on the wrong rate

The stock market has been scared of rising interest rates. Let’s think carefully, from the point of view of value investing, about these fears. Warren Buffett said investors should think of stocks as “disguised bonds,” as shares pay dividends, similar to coupons paid by bonds, and can be valued similarly. Bonds are routinely valued by … Read more

Dow tumbles 600 points as the stock market sweeps away Wednesday’s rebound

US equities extended losses in afternoon trading Thursday after a series of economic data reinforced expectations that the Federal Reserve will continue to aggressively raise interest rates in an effort to keep inflation in check. How shares are traded The Dow Jones Industrial Average DJIA, -1.54% lost 614 points, or 2.1%, to 29,070. The S&P … Read more

UK bond market chaos disrupts Treasury debt auctions as volatility bleeds across borders

The chaos in the UK government bond market impacted global markets in several ways, but in the US it initially pushed Treasury bond yields up in solidarity, while increasing the cost at which the Treasury US has financed nearly $ 90 billion in debt. On Monday, an auction of $ 43 billion of 2-year Treasuries … Read more

UK bond yields plummet after the Bank of England stepped in to buy “whatever scale needed”

UK gilts yields fell from a 14-year high after the Bank of England said it would buy bonds at “whatever scale is needed” to restore orderly market conditions. The 10-year benchmark gilt yield TMBMKGB-10Y, 4.014%, moving in the opposite direction to prices, it fell 49 basis points to 4.03%, after falling at one point below … Read more

Why a rising 10-year Treasury yield is disrupting financial markets as it approaches 4%

The 10-year Treasury yield, a vital benchmark that influences a wide range of consumer financing costs, is about to hit 4% for the first time in at least 12 years, a development that is starting to take hold in financial markets. The rate TMUBMUSD10Y, 3.986% It climbed to 3.988% on Tuesday, more than double from … Read more

Opinion: reset your retirement calculator now for today’s hovering stock markets and make sure you’re still on track

When the markets are down, you don’t want to look at your 401 (k) statement. But with a potential “lost decade” of equity returns looming, you need to at least take a look, because it’s time to realize your ability to afford retirement. Economists often point out that stock markets always go up eventually, but … Read more

Morgan Stanley says investors should consider this port in the market storm right now

The British pound’s big selloff, credited with exacerbating a global streak for markets last week, looks set to continue to wreak havoc on Monday. Old Blighty’s economic woes are adding to the growing list of market anxieties, pushing more investors into the dollar and out of perceived riskier assets like US equities and oil. Wall … Read more

Stocks crash? No, but here’s why this bear market is so painful — and what you can do about it.

Hashtags about a stock market crash may be trending on Twitter, but the selloff that brought US stocks into a bear market has been relatively orderly, market professionals say. But it is likely to get more volatile – and painful – before the market stabilizes. It really was a thrill ride for investors on Friday … Read more

13 stocks whose intrinsic advantages protect them from the economic uncertainty that pervades the market

Investors who were unsure of the Fed’s merciless inflation policy probably got the message now. And as markets adjust to the prospect of further hikes from a central bank that plans to “keep going until it’s over,” with threats of an escalating war in Europe and an energy crisis hanging in the background, the S&P … Read more