China stimulus adds to reasons to stay long AUD - UBS
- The news of additional Chinese stimulus proved a clear fillip for risky assets, noted UBS, and has provided an additional reason to maintain a long position in the...
- The news of additional Chinese stimulus proved a clear fillip for risky assets, noted UBS, and has provided an additional reason to maintain a long position in the...
The Federal Reserve kicked off its highly anticipated interest rate easing cycle last week with a 50-basis-point cut. Summit Place Financial Advisors founder and president Liz Miller joins Wealth! to break down how investors can best position their portfolios in a lower-rate environment. "So far this year, we saw the early part of the year really led by, we know, the mega-cap techs and they've held up fine. But what we're going to see now, and we've even started to see in the last week or two, is that some of these other sectors that are more interest-rate sensitive are going to start doing better, like housing and rentals (XLRE) and financials (XLF) and consumer goods (XLP, XLY) that really were struggling in the market the first part of this year," Miller tells Yahoo Finance. With the S&P 500 (^GSPC) at all-time highs, Miller notes that it is largely skewed by mega-cap tech stocks. "When we look at other sectors, they aren't making all-time highs. And our last high in the market was really December 2021," she adds. Thus, she believes that there is a lot of upside in the index as the Federal Reserve continues to cut lower interest rates. As China looks to recover its weak economy through a series of stimulus measures, Miller expects the nation's growth to impact US investments: "What's really needed is to get consumers in China to regain their confidence and start spending again. We look at luxury goods as sort of one of the easy views on what's China spending. We own a lot of multinationals, from Apple (AAPL) to Nike (NKE), that all do better when China is doing better. So we see this in small ways in a lot of US investments too." Miller views Nike as one of her top retail picks following the leadership shake-up. She calls the company "one of the most valuable brands in the world," and with the stock's decline over the last few years, investors can get it at a discount. She expects to see a "turnaround story" in Nike's fundamentals, and hopes to see new leadership return the company to its competitive position. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl
(Bloomberg) -- Applications to refinance mortgages surged for a second week as more Americans capitalized on the cheapest borrowing costs in two years.Most Read from BloombergEric Adams' Vanishing Promise to Fix NYC's 'Unfair' Property TaxesExclusive Palo Alto Girls School Borrows $106 MillionWaiting for the Miracle of Church-to-Housing DevelopmentWhere Cargo Bikes Are Freeing Cities From Polluting VansNY’s MTA Warns Against Borrowing More Than $13 BillionThe Mortgage Bankers Association’s refin
US stocks (^DJI,^GSPC, ^IXIC) are losing some steam after the S&P 500 notched its 41st record-high close of the year. However, Carson Group chief market strategist Ryan Detrick believes the post-rate-cut rally is here to stay. He joins Morning Brief to lay out his case. Detrick believes that the Federal Reserve should have cut interest rates before September, explaining, "Inflation is last year's problem. So we don't need interest rates over 5% right now." While the labor market is slowing, he notes that initial jobless claims hit a four-month low last week. "So are things perfect? No. Is the economy slowing down? Yes. Are we going into a recession? No, we don't think so. And we think these rate cuts are going to continue to kind of juice this bull market, honestly help this economy going forward," he tells Yahoo Finance. He highlights that the Federal Reserve has cut rates when the S&P 500 was near all-time highs. In 1980, the Federal Reserve cut interest rates 20 times within 2% of the index's all-time high. "Are we going to have two back-to-back 20% years? It's looking like it. Will we have three? Probably not. But at the same time, double-digit returns this time into next year if the economy hangs in there, we think it's possible," Detrick argues. He adds that small- and mid-cap stocks historically outperform when the Fed kicks off its rate-cutting cycle, and believes that investors could see 20% returns this time next year. Thus, he encourages investors to have diversified portfolios and rebalance every three to six months. He explains, "Don't always chase a shiny object... We've been neutral technology most of this year. Three, four months ago, people thought we were crazy to say that. There are some really stretched valuations in technology, doesn't mean we don't like it. Again, we're neutral, but there's some other areas like financials (XLF), like industrials (XLI), small caps (^RUT), mid caps (^RUI), that are pretty cheap historically, and those areas we're overweight." With the presidential election just a month and a half away, Detrick warns that October will be a volatile month. He notes that markets do not like uncertainty, thus, it will likely stabilize after the election. He adds, "The good news for investors out there, November historically is very strong in an election year, and December is too. So if we get some rockiness in October, that's OK." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
Here, we discuss some of the hot events of the first nine months of this year that are likely to have an impact on the market in the rest of the year.
The OECD described the UK’s economic growth as robust.
China just unveiled a stimulus package to pull itself out of its economic doldrums. But there could be consequences that ripple across the globe.
- The U.S. dollar weakened Wednesday, adding to the previous session’s losses, with the euro benefiting despite signs of economic weakness in the eurozone. At 04:00...
-- Most Asian currencies rose slightly on Wednesday as persistent bets on interest rate cuts dented the dollar, while the Chinese yuan hit a 16-month high on optimism...