In terms of positioning, investors moved to cash at numbers not seen since the U.S. debt ceiling standoff eight years ago. They shed positions in global stocks to their lowest allocation since the financial crisis bottom in March 2009, and increased bond allocations to an overweight level not seen since September 2011.plunged 40 percentage points, with a net 41% now expecting deterioration over the next year. That is the biggest one-month plunge in the 23-year history of the fund manager survey.
On the economy, expectations for growth tumbled by a record 46 percentage points, with 50% of respondents on net expecting growth to weaken in the next 12 months. Survey respondents "have not been this bearish since the Global Financial Crisis, with pessimism driven by trade war and recession concerns" Michael Hartnett, chief investment strategist at BofAML, said in a statement. "The tactical 'pain trade' is higher yields and higher stocks, particularly if the Fed cuts rates on Wednesday."Investors are watching what happens with this week's Federal Open Market Committee meeting, with the U.S.
Positioning in the $15.9 trillion U.S. government bond market reflects a conviction that yields are going to fall,. ETF investors have poured more than $66 billion into bond funds in 2019, about double the amount of equity inflows. Falling yields mean higher prices and better returns for funds. The biggest beneficiaries of the move have been funds that deal in the Treasury market. For instance, the
Source: News Formal (newsformal.com)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Social-media stocks, telecom shares lead stock market to narrow win ahead of Fed meetingU.S. stocks eked out modest to slight gains on Monday, powered by a climb in shares of technology-related and communication services shares. The Dow Jones...
Source: MarketWatch - 🏆 3. / 97 Read more »
Goldman Sachs is sounding the alarm to clients that technology stocks are overvaluedIt's about time to write off high-growth tech stocks, Goldman Sachs warned, saying the double whammy of sky-high valuation and elevated regulation is becoming a 'hazard' to the group. Please give me the symbol of ANY equity which is 'undervalued'.... This is the problem with central bank controlled FAKE markets. GuyAdami MelissaLeeCNBC Goldman Sucks trying to get cheaper entries $MDB $AYX $OKTA Pathetic manipulators
Source: CNBC - 🏆 12. / 72 Read more »
Corporate Bonds Give Reassuring Signals Amid Market JittersSolid demand for U.S. corporate bonds is signaling a reasonable amount of optimism from a group of investors known for their caution—a development that is helping ease worries about an economic slowdown.
Source: WSJ - 🏆 98. / 63 Read more »
High-speed trading firm GTS is making a push into the rapidly-changing bond market, and the CEO says 'there is so much we can do'GTS is planning to build upon its recently acquired ETF business to begin making markets in US corporate bonds.
Source: BusinessInsider - 🏆 729. / 51 Read more »
The Fed may break a lot of stock-market investors’ hearts next weekClamoring for a rate cut by the Federal Reserve at some point this year is running high, but the Fed may not comply. which really isn't anything new for Jerome... Conflicting msgs
Source: MarketWatch - 🏆 3. / 97 Read more »
Markets Send Mixed Signals on Trade BattleMarkets are sending conflicting signals about how big a threat the global trade rift presents, underscoring the difficulty investors face in sizing up the fallout from the U.S. and China’s spat. Ever think that investors are not concerned, WSJ, despite your fear mongering ? Investors ignore short-term temporary events like this, focussing on their long-term plan. Speculators are the ones having trouble figuring out the trade rift. And you know where speculators can go.
Source: WSJ - 🏆 98. / 63 Read more »