Side-by-side declines in U.S. equity and fixed income markets are pushing investors into cash, commodities and dividend-paying stocks as geopolitical uncertainty and worries over a hawkish Federal Reserve rock asset prices.
Investors have traditionally counted on a mix of stocks and bonds to blunt declines in their portfolio, with stocks ideally rising amid economic optimism and bonds strengthening during times of uncertainty.That strategy can go awry, however, and market gyrations stemming from Russia’s invasion of Ukraine, soaring commodity prices and the Fed’s hawkish tilt have combined to make it harder to follow the playbook this time around.
Nixon is increasing stakes in agricultural and energy companies, as well as real estate investment trusts , which have acted as an inflation hedge in the past. "Cash is paying literally nothing and is arguably negative because of inflation, but we're not seeing many things that we want to buy," he said.
Gains have been particularly hard to come by in the bond market, as investors recalibrate their portfolios to a Fed that appears ready to go all-out in its battle against inflation. "There is not a clean play-book for a post-pandemic Fed pivot at the same time you have a war between Ukraine and Russia," he said.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Stocks stall as Wall Street wraps up bumpy week of tradingStocks shifted between small gains and losses in afternoon trading on Wall Street Friday as investors wrapped up a bumpy week with more uncertainty about where to go next.
Leer más »
Stock futures rise slightly as Wall Street tries to recover from Wednesday's lossesHigher inflation and greater interest rate hikes have investors uncertain about the economic outlook.
Leer más »
Asian markets follow Wall Street lower as oil prices press higherStocks slipped Thursday in Asia following a retreat on Wall Street as crude oil prices rose sharply.
Leer más »
Wall Street bonuses hit record high of $257,500 per worker last yearInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Leer más »
Instacart makes a new detour in its long route to Wall StreetInstacart announced Wednesday that it’s doubling down on a lesser-known part of its operations, which is providing tech solutions to grocery chains like Publix and Aldi.
Leer más »