invest

Rising interest rates, slowing economy and rising unemployment will prompt US households to sell more stocks in 2023: Goldman Sachs

Rising interest rates, slowing economy and rising unemployment will prompt US households to sell more stocks in 2023: Goldman Sachs

U.S. households, the biggest buyer of stocks since 2020, are expected to sell more stocks in 2023 due to slowing economic growth and rising unemployment, according to Goldman Sachs strategists. The macroeconomic backdrop will push households to sell $100 billion worth of US stocks in 2023, wrote strategists led by David Kostin, chief US equity …

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'Big Short' Burry warns a repeat of the 2008 slump is in sight

‘Big Short’ Burry warns a repeat of the 2008 slump is in sight

Tension has become the new watchword in the markets. For several days, investors seem exhausted. They seem ready to panic at the slightest bit of bad news. Everything feels like all it takes is a spark to ignite everything. The reason for this fragility and vulnerability is the fear that the US economy and the …

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Stocks and bonds are 'discounted for disaster' after worst period for investors in 20 years

Stocks and bonds are ‘discounted for disaster’ after worst period for investors in 20 years

Things could always get worse. The S&P 500 SPX index, -1.51% Friday cemented its worst monthly percentage decline since the March 2020 pandemic lockdowns, but also joined the Dow Jones Industrial Average DJIA, -1.71% and the Nasdaq COMP composite index, -1.51% booking the worst and first 9-month period since 2002, according to Dow Jones Market …

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'Painfully Slow Capitulation': Why Investors Keep Getting Inflation Wrong

‘Painfully Slow Capitulation’: Why Investors Keep Getting Inflation Wrong

A brutal third quarter in financial markets ended on Friday and one thing is crystal clear: inflation is the most important factor driving asset valuations right now and yet few, if any, are able to accurately predict where it is likely to go. . The reason? Professional forecasters, policymakers and traders all continue to dismiss …

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Stock market reversal?  Why October is known as a "bear killer".

Stock market reversal? Why October is known as a “bear killer”.

While September lived up to its reputation as a brutal month for equities, October tends to be a “bear market killer,” known for its historically strong returns, especially during midterm election years. . Skeptics, however, are warning investors that negative economic fundamentals could overwhelm seasonal trends as what is traditionally the toughest time for stocks …

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Rate hikes spook the market, but equity investors focus on the wrong rate

Rate hikes spook the market, but equity investors focus on the wrong rate

The stock market was spooked by rising interest rates. Let’s think carefully, from a value investing perspective, about these fears. Warren Buffett has argued that investors should think of stocks as “bonds in disguise,” in that stocks pay dividends, analogous to coupons paid by bonds, and can be valued the same way. Bonds are regularly …

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Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market instability is the biggest risk for central banks globally, superseding inflation, due to massive leverage. So far the US Federal Reserve is lucky as there is low volatility in the SPX stock market, -2.11%, even if there is a bear market. Market stability gives the Fed space for the most aggressive rate hike campaign …

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Here's a simple way to help teach your kids complex financial lessons

Here’s a simple way to help teach your kids complex financial lessons

When I was in my late teens, my mother gave me two worn blue passport-sized notebooks containing the details of my investment accounts on deposit. I had no idea what to do with it, but it didn’t matter, because the accounts were empty anyway. Maybe for the best, because I’m pretty sure my assets wouldn’t …

Here’s a simple way to help teach your kids complex financial lessons Read More »

Here's a simple way to help teach your kids complex financial lessons

Here’s a simple way to help teach your kids complex financial lessons

When I was in my late teens, my mother gave me two worn blue passport-sized notebooks containing the details of my investment accounts on deposit. I had no idea what to do with it, but it didn’t matter, because the accounts were empty anyway. Maybe for the best, because I’m pretty sure my assets wouldn’t …

Here’s a simple way to help teach your kids complex financial lessons Read More »