Tag Archives: rates

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

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

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

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

JPMorgan says this cryptocurrency is a better buy than Bitcoin as interest rates rise — here are 3 easy ways to invest Bitcoin may gobble up most of the headlines, but America’s biggest bank says Ethereum, the world’s second-most valuable cryptocurrency, might be the better bet as interest rates start climbing. In a recent report, analysts at JPMorgan state that Ethereum’s growing number of uses — peer-to-peer lending, NFTs, gaming, stablecoins — should help it maintain its value… Source link

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 Tuesday, November 9, 2021 Investors are more worried about inflation than the Fed seems to be Amid the market’s debate over whether inflation will prove transitory or permanent, closely tracked indicators, such as bond yields, are sending us mixed signals about the future. That in part is because the real economy is also fighting through… Source link

Raising tax rates on corporations and high-income households is a key part of Democrats’ plan to pay for their proposed multi-trillion-dollar social spending plan, but opposition to that approach from Sen. Kyrsten Sinema of Arizona has sent lawmakers scrambling to find alternative ways to offset costs. Given Sinema’s resistance, there’s a growing chance that the corporate income tax rate could remain untouched in the Democratic budget bill. Even the compromise rate of 25% reportedly… Source link

Working the way we once did will never be the same thanks to COVID, and the result can be seen everywhere from fast-food restaurants to the shops at the mall. Companies are having trouble hiring people, and the labor shortage is big news everywhere –– which presents a major problem as the busy holiday season draws closer. Some affected companies are taking an innovative approach to lure people back, offering everything from tuition assistance to free Teslas. While some of these tactics… Source link

The school year is starting amid a surge in COVID-19 cases, particularly among children in states with the lowest vaccination rates, as the highly contagious Delta variant circulates in the U.S. “I have to believe it’s not coincidental that these high rates of exposure and COVID cases are linked to the lower vaccination rates in these communities,” Dr. Susannah Hills, pediatric airway surgeon and assistant professor of EMT at Columbia University Medical Center, said on Yahoo Finance… Source link

When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 17x, you may consider Apple Inc. (NASDAQ:AAPL) as a stock to avoid entirely with its 29.7x P/E ratio. However, the P/E might be quite high for a reason, and it requires further investigation to determine if it’s justified. Before we start, investors should know that Apple has an outstanding performance in multiple areas, such as cash flows, working capital management, earnings quality, and… Source link