James Reilly of Capital Economics expects U.S. real, or inflation-adjusted, yields to resume their rise shortly and possibly end the outperformance of stocks.
As investor sentiment shifts by the day, the U.S. stock market’s rally in recent weeks may be at risk again as rising real yields threaten to undercut the market’s performance relative to the rest of the world. That’s the view of James Reilly, an assistant economist at Capital Economics. In a note released Thursday, he said Capital Economics expects “equities in general to fall over the rest of 2022” and suspects that “stocks in the U.S.
Real, or inflation-adjusted, yields matter because they’re seen as the true cost of capital for corporations after factoring in inflation. When they go up, real yields are bad for investors in stocks and other risky assets as they make it more expensive for, say, technology companies to undertake development, as one example. And Reilly says real yields are likely to keep rising in line with the expected trajectory of the Fed’s main policy interest rate which currently sits between 2.25% and 2.
Since mid-June, U.S. equities have generally been rising on the view that an impending domestic recession would likely curtail the Fed’s aggressive rate-hike campaign, and help bring inflation down.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
LeBron James School Student Treated to VIP Access at NASCAR RaceThe LeBron James Family Foundation and I Promise School were featured as a sponsor on Chris Buescher’s car, and one lucky student got a special experience on race day.
Leer más »
James Roberts, MD, Trailblazer in EM, Dies at Age 76James R. Roberts, MD, whose 45-year career spanned the evolution of the field of EM as it grew into the flourishing specialty it is today, died on July 22, 2022, at the age of 76 years.
Leer más »
Inside LeBron James' meeting with Lakers front office: Darvin Ham's offensive plan, Rob Pelinka's roster patienceLOS ANGELES — It was a grand opening ceremony for one of the more iconic franchises in all of sports in late July.
Leer más »
New brown dwarf discovered from James Webb early release dataThanks to early release data from the James Webb telescope, a team of scientists have found a new T-type brown dwarf.
Leer más »
New book 'Directed by James Burrows' tells tales of TV sitcom legendJennifer Aniston calls James Burrows an American treasure, but the master of the TV sitcom has never been as famous as the shows he directed.
Leer más »
James Webb Telescope's mind-blowing reach into the universe shown in new videoA new video released by the ESA showcases the full scope of the James Webb space telescope as it zooms in on the Cartwheel Galaxy.
Leer más »