The biggest story this week was easily the Fed’s Wednesday meeting, which made it clear that another interest rate hike could be seen as early as June. The market-implied odds of a June hike are up to 32%. The immediate result was a selloff in both equity and bond markets, and a noteworthy cool down in gold prices. Only the dollar is up. Markets have bounced back somewhat as of this writing; however, the S&P 500 touched a two-month low on Thursday amid concern that higher borrowing costs will further burden a struggling global economy, following the Fed’s hawkish commentary in meeting minutes.
- Companies slash buybacks by 38% from one year ago.
- A minority of stocks accumulates a disproportionate amount of total return.
- Large-cap overweight from passive investing has been timely; will mean reversion support small-caps?
- 3 factors that drive dividends in the long run; however, don’t forget to look back at management commitment.
- Can low-volatility ETFs solve the biggest investing problem: buy low/sell high?
Comments
Login to post a comment.