Quants Ready to Sell $50 Billion Worth of Stocks if the Charts Break
Following their role in propelling the recent Wall Street rally, trend-following quants now appear set to sell equities if the S&P 500 falls below a crucial technical threshold, according to JPMorgan Chase & Co.’s trading desk. If the benchmark index falls below its 200-day moving average, commodity trading advisors may be obliged to sell $50…
How to Make Opportunities on Volatile Market Conditions
There is currently a lot of noise influencing the current volatile market conditions. For instance, last week’s avalanche of economic statistics proved that inflation is still very much alive and well. As previously mentioned, inflation has been falling for seven months in a row, but the rate of drop is slowing, which is discouraging. It…
Affirm Shaping Up to be a Bad Stock for 2023
Perhaps you’re looking for a fintech stock to invest in and hold in 2023. That’s good, but Affirm Holdings (NASDAQ: AFRM) is inappropriate because the company is still grappling with the consequences of pandemic-era over-hiring. I am neutral on AFRM shares because the company’s latest results were underwhelming, and an inflation-driven decline in client spending…
Sterling Gets Hammered, as Bank of England Might Slow Rate Hikes
Pound Sterling fell sharply against the dollar on Wednesday, falling to its lowest level in six weeks, as a sharper-than-expected slowdown in UK inflation relieved pressure on the Bank of England to maintain raising interest rates. The pound fell as much as 1.5% to $1.198, a level that was last seen in early January. The…
CPI Report: Stocks Surge Amid Predictions of Short-Term Positivity
According to market commentators, the stock market’s early-year gain is doomed if a highly anticipated U.S. CPI report on Tuesday kills hopes for a faster decline in the cost of living in America. According to a Dow Jones survey of experts, the January CPI data from the Bureau of Labor Statistics, which analyzes changes in…
Grantham Jeremy’s Market Insight: Valuations Remain Too High Despite 20% Drop in 2022
Jeremy Grantham, a legendary investor, cautioned investors of a potential stock market catastrophe in his 2023 outlook letter, which was just recently published. In his worst-case scenario, he predicted a 50% drop in the stock market this year, arguing that valuations are still too high even after last year’s 20% drop. According to Grantham’s worst-case…
S&P 500 Still Likely to Have Losses In the Horizon
The S&P 500 could have another bad year, according to Wall Street analysts and bankers, who warn that the benchmark stock index is still not a safe bet for investors in the face of a slew of macro and market challenges. The S&P 500 plummeted 20% in 2022, as inflation rose and the Federal Reserve…
Time to Buy Stocks is Now, No Need to Wait for Good News
Staying on the Sidelines It’s alluring for investors looking to buy stocks who have been stung by the recent bear market to stay on the sidelines, until it’s apparent that the economy will escape recession, or recover from one. Many analysts foresee another turbulent year for equities, at least in the first part of 2023….
Silver Likely to Underperform Against Gold in 2023
At the time of writing, silver is expected to end 2022 with slight gains and, perhaps more shockingly, to outperform gold after a far more volatile year. Silver’s lackluster performance this year was caused by two factors: the strength of the US dollar and higher bond yields, both of which resulted from vigorous policy tightening…
Aluminum Looks Headed for More Turbulence
Aluminum demand has skyrocketed this year, with prices reaching an all-time high in March. The post-pandemic consumption boom saw strong demand for electric vehicles, refrigerators, and renewable-energy equipment, all of which contain silver-gray metal. Futures dealers are scrambling to limit price risk in the face of such demand and price volatility. Demand is so strong…
