Investors are preparing for the release of a U.S. consumer-price index that may show no meaningful letup in inflation, leaving few safe places to hide just as systemic risks may be growing.
That’s likely to add up to an environment in which investors will need to rely on less-traditional asset classes than ever before. When the U.S.
What makes the prospect of another 6%-level CPI reading so nerve-racking is the fresh uncertainty it could throw into financial markets over where the Fed needs to go with interest rates. Though policy makers prefer the PCE index and less-volatile core readings, the annual headline CPI rate matters because of its impact on household expectations. It’s been consistently above 6% since October 2021, though down from its peak of 9.1% last June.
Back in the 1970s, the S&P 500 SPX, -1.45% produced an average nominal return of 6% on an annualized basis for the whole decade, though the index was down by 1% a year in real terms, according to Deutsche Bank. Treasurys “suffered too,” with nominal returns also wiped out by inflation, said researchers Allen and Reid, who described the decade as one of the worst ever for major assets.
Over the past week, financial markets have toggled back and forth between pricing in the prospects of higher interest rates — reinforced by two days of testimony by Federal Reserve Chairman Jerome Powell — and gauging the damage caused by the central bank’s hikes thus far. The closure of Silicon Valley Bank has put a focus on the toll of higher rates, and placed a cloud over other banks.
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.
Column: The Silicon Valley Bank collapse is Silicon Valley's problem, not yours'Based on the information that has been made public, the bank unwisely put its eggs in one basket by taking deposits from an insular group of depositors: venture-funded startups.' Column by hiltzikm: hiltzikm Venture capitalist are garbage people let them burn hiltzikm Biggest bank to fail since WAMU in 2008...this is unsettling news since we recall what 2008 was all about. hiltzikm This piece is incredibly ignorant. The author appears completely unaware of how California pays its bills, not to mention how this has already spread to LA; today, a major film production payroll company has informed clients it can't process payroll due to funds frozen at SVB.
Source: latimes - 🏆 11. / 82 Read more »
How Silicon Valley Turned on Silicon Valley BankThe fallout from Silicon Valley Bank threatens to engulf Silicon Valley—and has put the rest of the banking system on edge Biden’s America. Are we having fun yet? bank crooks with silicon valley tech libs. boo hoo The money in SVB most are richest's and oversea dirty money from CCP families. Let it fail.
Source: WSJ - 🏆 98. / 63 Read more »
Silicon Valley Bank CEO sold $3.6 million in stock days before the bank’s failureSilicon Valley Bank Chief Executive Officer Greg Becker sold $3.6 million of company stock under a trading plan less than two weeks before the firm disclosed extensive losses that led to its failur… Prescient move! Calling the SEC and not about basketball Busted!!
Source: mercnews - 🏆 88. / 68 Read more »
Silicon Valley Bank Closed by Regulators After Bank RunRegulators shut down tech lender Silicon Valley Bank (SVB) on Friday after a bank run. See potential bias and similarities in coverage from CNNBusiness, WSJ and nypost: SVB SiliconValleyBank
Source: AllSidesNow - 🏆 572. / 51 Read more »
What to know about Silicon Valley Bank and bank runsBank runs are triggered by fear, and fear is bad for business. This is a direct result of the incompetent and corrupt Biden and his thug administration...they are systematically destroying our country...for once please just tell the fucking truth...damn you people are so disgusting and vile...
Source: axios - 🏆 302. / 63 Read more »
Silicon Valley Bank branches closed by regulator in biggest bank failure since Washington MutualSilicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the FDIC has been appointed receiver, becoming the first FDIC-backed institution to fail this year. Nice recommendation jimcramer Should it inspire confidence in the minds of its creditors that Silicon Valley Bank is FDIC insured?
Source: MarketWatch - 🏆 3. / 97 Read more »