Opinion: Market instability replaces inflation as a major risk, increasing the chances of a pivot by the Federal Reserve

Market instability is the biggest risk for central banks globally, as it replaces inflation, due to the huge amount of leverage. So far, the US Federal Reserve is in luck because there is low volatility in the SPX stock market, -2.11%, even if there is a bear market. Market stability gives the Fed room for … 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

That’s when Vanguard’s chief US economist now thinks we’re “very likely” to enter a recession. And what could be the “biggest risk” you take if we do.

Experts say that with the right savings strategy, you can do a lot to prepare for even the worst economic turmoil. istock With markets posting double-digit losses, inflation breaking decades-old records, and the Federal Reserve steadily rising interest rates, among other factors, the likelihood of a full-blown recession may seem inevitable. And a number of … Read more

Homebuyers are withdrawing contracts in the Sun Belt, particularly in Las Vegas, Phoenix, Tampa and Texas

The tide has turned and buyers are now pulling deals back into the sun belt as rates rise and house prices remain inaccessible. Once pandemic boom cities, 15.2% of homes in Sun Belt cities that had been under contract in August went bankrupt, or about 64,000 homes nationwide saw deals dropped, according to a new … Read more

“Financial markets are throwing in the towel”: recession fears rise as the Fed holds back the economy

The likelihood of significantly higher interest rates skewed the odds towards another recession within a year, economists say. Yet some continue to hope that the US can get away with a period of slow growth instead of a downright decline. In a move widely anticipated by financial markets, the Federal Reserve orchestrated another huge US … 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

I am the chief economist of the National Association of Home Builders. These are the 5 things you need to know about the real estate market now

Robert Dietz National Association of Home Builders Many would-be homebuyers are watching as home prices begin to drop and are wondering: What do I need to know now about the housing market? (See here the lowest mortgage rates you may qualify for.) So we asked Robert Dietz these questions. Since joining the National Association of … Read more