Tag Archives: Interest

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Monday, January 24, 2022 Memo to investors: Don’t buy flaming piles of garbage right now.  Those flaming piles of garbage could be the five software stocks (of companies losing money and valued at 85 times forward earnings) on your watchlist that have on average lost 25% in the past four weeks as a result of Federal Reserve rate hike fears (and… Source link

With the Federal Reserve now widely expected to jack up interest rates in March to beat back rampant inflation, investors in the stock market should buckle up for a more muted few months of returns, says Goldman Sachs chief U.S. equity strategist David Kostin.  The S&P 500 has been “resilient” around the start of Fed hiking cycles in the past, Kostin notes. But one could interpret that resiliency Kostin speaks of in different ways.  The first is that the stock market didn’t fall off a cliff… Source link

Brace for a heavy dose of interest rate hikes out of the Federal Reserve, warns strategists at Goldman Sachs.  “Our economists expect the Fed will begin its hiking cycle at the March meeting and hike a total of four times in 2022. They expect an additional three hikes in 2023 and three hikes in 2024. The market is currently pricing a similar pace of tightening in 2022 but expects fewer total hikes this cycle,” said Goldman Sachs strategist Ben Snider in a research note on… Source link

Consumer prices in December rose the most year-over-year since 1982, feeding into the Federal Reserve’s guidance that it may need to raise interest rates three times this year to combat inflation. But one economist says the last year has taught an important lesson: forecasters have to stay humble, and nimble. That means there’s no guarantee that three hikes will be necessary. “I think there’s some downside risk for the economy, and, therefore, three hikes are not necessarily in the… Source link

Federal Reserve Chairman Jerome Powell told Congress Tuesday that if the pace of price increases do not come down, the central bank will get more aggressive with raising short-term borrowing costs. “If we see inflation persisting at high levels, longer than expected, if we have to raise interest rates more over time, then we will,” Powell said in a Senate Banking Committee hearing. Powell is facing the Senate for his renomination. President Joe Biden announced in November that he was… Source link

Yandex (NASDAQ:YNDX) was the target of a large drop in short interest during the month of November. As of November 30th, there was short interest totalling 5,570,000 shares, a drop of 26.6% from the November 15th total of 7,590,000 shares. Currently, 1.9% of the company’s stock are short sold. Based on an average daily volume of 1,470,000 shares, the short-interest ratio is presently 3.8 days. Shares of Yandex stock opened at $62.18 on Friday. Yandex has a one year low of $58.91 and a one… Source link

GameStop (GME) and AMC (AMC) climbed into green territory on Tuesday after opening lower, as the overall ‘meme’ stock group has slumped recently. GameStop shares closed 8% higher while AMC gained more than 5%.  “We call them meme stocks but in essence there’s another name for them and that’s story stocks,” Market Strategist Michael Antonelli told Yahoo Finance Live., “Story stocks are usually high fast growers, high flyers, that benefit from flows and cheap money,” he said. “These story… Source link

While traders are making bank chasing Apple to a $3 trillion market cap, many in the market are adding cash to their accounts amid heightened concerns around the Omicron variant and a more hawkish Federal Reserve. Bank of America’s monthly fund manager survey out Tuesday found cash allocation among investors surged 14 percentage points in December from November. Fund managers were net 36% overweight cash, the highest allocation to the asset class since May 2020. Besides cash, investors also… Source link

In another sign of a boom in entrepreneurship during the pandemic, “How to start a business,” beat “How to get a job,” in Google search queries in 2021.  Google’s just-released “Year in Search” showcases the tech giant’s data from the past 11-plus months, broken down into a list of global hot topics and interactive timelines. The company did not respond to a request to specify how many times people searched “How to start a business,” but its findings jibe with U.S. Census Bureau data,… Source link

Goldman Sachs: Use these 5 high growth stocks to shield yourself from rising interest rates Rising interest rates are typically a threat to the stock market, but not all stocks are created equal. According to investment banking giant Goldman Sachs, one type of stock should continue to perform well as rates rise: highly profitable growth stocks. “Growth stocks with high profit margins outperformed unprofitable growth stocks when real rates jumped in 1Q 2021,” writes the bank’s chief U.S…. Source link