INSUBCONTINENT EXCLUSIVE:
By Sarah PonczekOne crossed-out word was all it took to send financial markets into a unified celebration that has few precedents in the
past decade.
Stocks rose to records, bonds surged, oil jumped almost 10 per cent and even gold got into the act, as traders celebrated a
dovish conversion at the Federal Reserve
One back-of-the-envelope measure shows the rally in everything was the strongest since 2011.
Banished of late has been the soul searching
that had afflicted investors for more than a year
The average wire-to-wire return in stocks, bonds, oil and gold was somewhere around 4% in the week, the most since 2011
that were still among the biggest in years.
Worryingly to many, the rally continued to lift both risk-on and risk-off assets
While equity and oil surged, so too did government bonds, pushing the 10-year Treasury yield below 2% for the first time since 2016
Front, the chief investment officer at Front Barnett Associates
the classic 60/40 stock-bond allocation
The first quarter marked the best period for the strategy in nearly a decade, and now it looks as though those gains are set to grow come
Getting the timing right on those calls is harder than it might seem.
In the 12 months following days when pretty much every asset class
rose in unison, the S-P 500 has been higher nearly 70 per cent of the time, with a median gain of roughly 8 per cent, according to data from
Sundial Capital Research Inc
lost momentum this week in the wake of a dovish Fed and lower inflation expectations, which tends to strengthen the case for other assets
A weaker greenback could help sales for large companies that do business overseas as prices turn incrementally cheaper in other countries
It also helps commodities that are priced in dollars like gold.
Lindsey Bell, an investment strategist at CFRA, is recommending that her
clients increase exposure to the metal through exchange-traded funds, like the $33 billion SPDR Gold Shares fund or the $12.5 billion
or not, believes that there needs to be some major comeuppance, some cleansing moment, because for whatever reason the good puritan instinct
What I think has been forgotten is that if you want lower for longer, you also have to accept the longer part of it
