The inflation wave cools down in July. Should Stock Investors Still Defend?

The stock’s latest surge propelled the Nasdaq Composite COMP up, +2.09% Wednesday from the bear market area and the Dow Jones Industrial Average DJIA, +1.27% to exit the correction area. But the sharp rebound has also sparked discussions about whether investors should re-balance their portfolios, moving away from defense activities. Over the past month, growth … Read more

Opinion: Inflation report brings 2 pieces of good news for retirees and pension savers

Retirees and those looking for a secure income got two very good news this week, although you may have heard only one. July’s inflation was lower than fears (although there is now a debate about what ‘real’ inflation is – more on that below). Meanwhile, your ability to earn a guaranteed return on risk-free investments, … Read more

Rising real yields could dampen US equity market’s outperformance against the rest of the world, says economist

As investor sentiment shifts by the day, the US stock market rally in recent weeks may once again be in jeopardy, as rising real yields threaten to undermine market performance relative to the rest of the world. That is the view of James Reilly, assistant economist at Capital Economics. In a note released Thursday, he … Read more

Stock market investors applaud July’s inflation data. Big companies like PIMCO are not so sure.

Wednesday’s release of the consumer price index report for July contained enough downside surprises to give equity investors hope that the worst inflation may be behind us. Still, an undercurrent of concern persisted at big companies like PIMCO, where the focus was on more sticky components of the data that could only get worse. According … Read more

Markets are extrapolating from one release to another. These are low-cost stocks that deliver long-term returns, say these fund managers

Wow, that was a bit scary: US consumer price growth slowed to 0% in July, the Labor Department reported Wednesday. Core price growth slowed to 0.3%, which was lower than expected. In the past 12 months, prices have risen by 8.5%, also below forecast. The soft reading appears to justify the 13% rally in the … Read more

Don’t be fooled by a drop in US inflation. On Wednesday, the markets will be tuned to another figure.

Traders, investors and economists are all counting on Wednesday’s consumer price index report showing a decline in annual headline inflation in the US for July. But there is another figure buried in the consumer price index data that tends to shock the markets. It’s called the core year-to-year CPI value, a measure that excludes volatile … Read more

AMC aims for huge debt burden with special dividend ‘APE’

AMC Entertainment Holdings Inc. surprised Wall Street with the announcement of the special “APE” dividend after the market closed on Thursday. This is, of course, a company that is no stranger to bold moves, as evidenced by the cinema chain’s $27.9 million investment in gold and silver miner Hycroft Mining Holding Corp. HYMC, -5.37% earlier … Read more

Muni Market transaction costs remain high despite customer protection rules, study says

Municipal bond dealers are setting prices well above what they pay for the securities, reaping windfall gains at the expense of individual investors, despite recent regulations aimed at curbing so-called markups, according to an academic study of trading data released Thursday. “Dealers appear to be using their pricing policies to charge higher price increases to … Read more

Financial markets could see a three-month range of 8.8% inflation readings next week, which could lead to ‘bad news’

The financial market’s most knowledgeable inflation traders expect a series of approximately 8.8% annual US consumer price readings over the next three months, starting with the release of July’s data on Aug. 10. While such readings would be lower than June’s 9.1% reading and support the theory that inflation has reached a nearly 41-year high, … Read more

Why the tensions between China and Taiwan came to the fore of financial market concerns

It is an island off the coast of China, with a land area comparable to Maryland and Delaware combined. The population is about 1 million higher than Florida’s. Often overlooked in the headlines, Taiwan is drawing the attention of the financial market as the biggest macro risk of the day, leading many traders and investors … Read more