Stock Market
-
We Want to Hear From You: What Stock Market Moves Will You Make After Midterm Elections?
Now that the hotly contested midterm elections have been decided, U.S. voters will watch to see if newly elected officials will deliver on promises to lift the nation out of its economic morass.
Many voters made their decisions out of frustration over current economic conditions. Government spending, ineffective stimulus measures and stubborn unemployment were the biggest issues among voters this year. And given the potential for change in U.S. economic policy, investors are eager to see what the stock-and-bond markets will do in the months to come.
Although there is unlikely to be any quick decision making in Washington, investors will hope for the status quo in at least one area - a continued market rally, which is the norm for midterm election years.
-
Will the Mid-Term Elections Drive the Market Into High Gear?
The past five days added more hues to the emerging snapshot of U.S. economic growth that is sluggish and top-heavy, but still rolling forward -- kind of like a tank that can't get out of first gear. New data shows that U.S. GDP is back to 70% of its pre-recession strength, but jobs have recovered only 9%. It's this disconnect between output and employment that has made the current "recovery" seem so anemic.
That was fine for investors, who bid up risky assets in the past week just as they had the previous three weeks. TheS&P 500rose 2%, theNasdaq 100rose 3.5%, overseas large caps rose 3.3%, and emerging markets rose 2.5%.Goldrose 1.7%,silverrose 3%,crude oilrose 2.1%, and evenbondsrose 1.5%. Among the overseas markets we care most about,ishares MSCI Thailand Index Fund (NYSE: THD) rose 5.6%,Wisdom Tree IndiaEarnings Fund (NYSE: EPI) rose 3.3%, and ishares MSCISingaporeIndex Fund (NYSE: EWS) rose 2.4%.
To find out why the mid-term elections are important to the market read on...
-
Leaders Emerging as the U.S. Economy Shakes Off Its Stupor
The past five days added more color to the emerging picture of U.S. economic growth that is slow and unsteady -- but still in gear. Investors decided that was good enough, and bid up risky assets. TheStandard & Poor's 500 Indexrose 1.4%,emerging marketsrose 1.8%,goldrose 2.2% andbonds fell.
Underlying breadth modestly weakened, as the market is primarily being propelled now by a withdrawal of sellers -- not an increase in buyers. News late in the week typified the entire span, as it mostly favored bulls.
Indeed, the U.S. economy faces an uphill climb but some companies are emerging as market leaders.
To find out which companies are dragging the economy forward read on...
-
Why Investors Need to Pay Attention to These Emerging Markets
The U.S. market showed improvement last week, but is still falling short of the continued growth and profit opportunities that emerging markets have to offer.
Stocks inched higher on Wall Street over the past week, taking heart from news of a modest improvement in jobs and a narrowing of the U.S. trade deficit. Both acted to counter the argument that the U.S. economy is speeding for a cliff in a foreign-badged car.
Bonds finished down slightly, crude oil rose 2.6%, and gold was down slightly.
A tad dull, sure. But the fact that there wasn't a rout after the big gains of the first week of the month, though, has to be considered a win for the bulls.
And some updates from the corporate world and overseas markets should keep investors cheering this week.
To read why investors have reason to celebrate -- and what opportunities they can't ignore -- click here.
-
Stock Market's Rally A Salute to Slow Growth
The markets staged a relief rally last week that reflects Wall Street's attitude about the overall economy. Simply put, investors are saying they can live with slow growth, so long as the U.S. can avoid a double-dip recession.
Stocks leapt around the world last week like jets of water shooting out of a fountain that had been closed down for weeks. The major U.S. indexes rose 3%, the NASDAQ rose 4%, non-U.S. foreign big-caps rose 3.6% and small-caps rose 4.6%.
Many of our plays on growth overseas rose even more: iShares MSCI Thailand Index Fund (NYSE: THD) jumped 4.9% and iShares MSCI Chile Investable Market Index Fund (NYSE: ECH) rose 4.4%, while iShares MSCI Singapore Index Fund (NYSE: EWS) rose 3.2% and iShares MSCI Turkey Index Fund (NYSE: TUR) rose 3.5%. Once again, as we have seen all year, the response in iShares FTSE/Xinhua China 25 Index ETF (NYSE: FXI) was more muted, up 2.4%.
Read on to see where the next turning point for the market will come...
-
Question of the Week Responses: The U.S. Bond Market Has Lost Its Luster With Investors
Ongoing stock market worries and a string of discouraging economic reports have imbued the U.S. bond market with "safe-haven" status. The upshot: Investors have poured record amounts of money into bond funds.
Bond funds for the past two years have seen inflows almost as high as stock funds did during the Internet bubble, according to the Investment Company Institute (ICI). From January 2008 through June 2010, outflows from equity funds totaled $232 billion, while inflows to bond funds hit a staggering $559 billion.
Investors are spending billions in the bond market even as yields reach record lows. Investment-grade U.S. corporate debt yields hit a low of 3.79% last week and two-year U.S. Treasury yields fell to less than 0.5%.
-
Is the Bond Bubble About to Burst?
Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years. But now many analysts fear bonds have entered bubble territory and pose a rising threat to their holders.
The amount of money flowing into bonds is "probably not sustainable on a consistent basis" Joel Levington, managing director of corporate credit at Brookfield Investment Management Inc., told Bloomberg News. "Eventually it won't be sustainable. Whether that means five years from now or five weeks is a little difficult to tell."
Bond funds have attracted more investment than stock funds for 31 straight months, which matches the record streak that ran from 1984 - 1987. Bond funds attracted $559 billion in the 30 months through June, according to the Investment Company Institute (ICI). Meanwhile, investors withdrew $209.4 billion from U.S. stock funds and $24.4 billion from funds that buy foreign stocks.
