McGeever
By Jamie McGeever ORLANDO, Florida (Reuters) -Theory suggests that the divergence in value between U.S. stocks and bonds will eventually get so extreme that investors will need to reduce their exposure to ultra-pricey equities and start loading up on beaten-down Treasuries. If the so-called U.S. ‘equity risk premium’ (ERP) can…
By Jamie McGeever ORLANDO, Florida (Reuters) -FOMO and TINA are two English-language acronyms that have become common parlance in financial markets. Together, they help explain the relentless rise of U.S. equities – a trend that now should probably be raising red flags. Investors’ “fear of missing out” (FOMO) on…
By Jamie McGeever ORLANDO, Florida (Reuters) -A handful of mega-cap technology stocks has fueled Wall Street’s boom for much of this year, but the promise of aggressive interest rate cuts has broadened participation recently across a range of stocks and sectors. This increased breadth should help sustain the rally well…
By Jamie McGeever ORLANDO, Florida (Reuters) -Hedge funds are their most bullish on the Japanese yen in eight years, but as their ‘long’ positions grow and the currency strengthens, yen volatility is also rising. This raises the question whether the huge turnaround in the yen’s fortunes recently, reflected in the…
By Jamie McGeever ORLANDO, Florida (Reuters) – Nvidia (NASDAQ:)’s share price slump after its strong, but not exceptionally strong, second-quarter results raises a broader question for U.S. stocks: Are 2025 earnings growth forecasts too optimistic? The aggregate 2025 earnings growth forecast for S&P 500 companies has risen steadily from 13.7%…
By Jamie McGeever ORLANDO, Florida (Reuters) -Bond investors are by default pessimists and equity investors are naturally optimistic. But this market maxim doesn’t fully explain the seemingly wide chasm developing between the two camps’ views on the U.S. economy and looming interest rate cuts. Rates markets are currently pricing in…
By Jamie McGeever ORLANDO, Florida (Reuters) – The shine may finally be coming off AI. If so, the rotation out of Big Tech into small caps that has emerged recently could quickly accelerate. The question then is whether outperforming laggards hold up the broader market, or does the AI selloff…
By Jamie McGeever ORLANDO, Florida (Reuters) -U.S. equity market concentration is, by some measures, now the strongest ever, raising justifiable concerns that having the entire market’s fate in the hands of so few stocks will only end in tears. The current environment highlights a lack of diversification and risk-spreading options,…
