Expect the stock market to be driven ‘more by earnings than the macro,’ says Morgan Stanley’s Wilson

Expect the stock market to be driven ‘more by earnings than the macro,’ says Morgan Stanley’s Wilson

Earnings season will be a key test for the stock market after the S&P 500 last week closed out its worst half-year performance since 1970, said strategists from Morgan Stanley. The direction of stocks going forward will be mostly tied to second-quarter earnings as interest rate hikes and surging inflation reflect the growth slowdown more … Read more

ARMs are making a comeback—are they too risky for hopeful homebuyers?

ARMs are making a comeback—are they too risky for hopeful homebuyers?

Adjustable-rate mortgages suffered a tarnished reputation after the 2008 financial crisis. They faded away and lurked on the fringes of the mortgage market for years. But as home buyers grapple today with skyrocketing prices and interest rates, ARMs are making a comeback. And that’s totally not a bad thing. ARMs are appealing because they start … Read more

Future Returns: Single-Family Offices Turning More to Private Markets

Future Returns: Single-Family Offices Turning More to Private Markets

Single-family offices across the world are moving deeper into private markets in response to higher inflation, rising interest rates, and central banks scaling back their market support, a UBS Global Wealth Management report revealed earlier this month. Among 221 family surveyed—with an average total wealth of US$2.2 billion—many are planning to shift their strategic asset … Read more

Disney is seeing ‘resilient’ theme-park attendance despite turbulent economy, says analyst

Disney is seeing ‘resilient’ theme-park attendance despite turbulent economy, says analyst

In the face of turbulent economic times, Walt Disney Co.’s theme-park business could still see some magic. Bank of America’s Jessica Reif Ehrlich wrote Thursday that attendance at Disney DIS, -0.33% parks “remains resilient despite recent macro volatility as visitors rarely cancel trips once booked.” She added that the company’s move to cancel Disneyland annual … Read more

Fed looks ‘dead set’ on tightening financial conditions until the economy slows, warns BlackRock

Fed looks ‘dead set’ on tightening financial conditions until the economy slows, warns BlackRock

The Federal Reserve’s battle to get inflation down from a 40-year high likely means it will raise interest rates until the US economy slows, strategists at the BlackRock Investment Institute warned on Tuesday. “The Fed seems dead set on raising rates this year to levels that, in our view, would clearly slow the economy,” Jean … Read more

Stock market set for worst half-year performance since 1932. Recession threat will dictate 2nd half: Deutsche Bank

Stock market set for worst half-year performance since 1932. Recession threat will dictate 2nd half: Deutsche Bank

The S&P 500 officially hit bear market territory last week and, according to Deutsche Bank, is currently on track for its worst half-year performance since the Great Depression. With the large-cap benchmark SPX, +2.45% Having shed around 22.3% so far in 2022 — the biggest drop since 1932 (see chart below) — strategists at the … Read more

Fed’s Bullard says US economy should continue to grow in coming quarters

Fed’s Bullard says US economy should continue to grow in coming quarters

The US economy should continue to grow in the coming several months, said St. Louis Fed President James Bullard on Monday, playing down fear of a severe recession that some economists and market pros view as inevitable in the face of the central bank’s war against too-hot inflation. “On GDP growth, I think that the … Read more