The stock market has already priced in bad news from the Russia-Ukraine crisis, and any relief or de-escalation could lead to a 5% rally, according to Morgan Stanley.
They also noted that a return to fundamentals is coming, and that's what investors should be focused on now.
"If we were to get some signs of a de-escalation in Russia/Ukraine tensions, it seems like a quick 5% rally is not out of the question,"analysts led by Mike Wilson wrote it on...
They also noted that a return to fundamentals is coming, and that's what investors should be focused on now.
"If we were to get some signs of a de-escalation in Russia/Ukraine tensions, it seems like a quick 5% rally is not out of the question,"analysts led by Mike Wilson wrote it on...
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According to FactSet, the combined revenue exposure of the $S&P 500 Index (.SPX.US)$ to Russia and Ukraine is about 1%. On possible reason for the small number of companies commenting on the situation in Ukraine is that S&P 500 companies overall have little revenue exposure to Russia and Ukraine.
A list of the 10 S&P 500 companies with the highest combined revenue exposure to Russia and Ukraine can be seen in the chart below.
As of Feb 22...
A list of the 10 S&P 500 companies with the highest combined revenue exposure to Russia and Ukraine can be seen in the chart below.
As of Feb 22...
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What would happen if the Fed shrinks $8.87 trillion balance sheet?
"The balance sheet is substantially larger than it needs to be," Fed Chair Jerome Powell said during a press conference. "There's a substantial amount of shrinkage in the balance sheet that needs to be done."
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According to BofA, during times of QT, history suggests that stocks>bonds, Value>Growth, large = small.
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The sectors which underperformed the index most consistently during his...
"The balance sheet is substantially larger than it needs to be," Fed Chair Jerome Powell said during a press conference. "There's a substantial amount of shrinkage in the balance sheet that needs to be done."
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Should investors worry about the U.S. economy? According to Zerohedge's an article, Goldman Sachs and Morgan Stanley are worrying about it.![]()
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Goldman Sachs, traditionally one of the biggest sellside cheerleaders cautions in its Midday Market Intelligence note, one of the reasons for the sharp drop in risk assets today is not just the resurgence in geopolitical concerns but also "the potential the economy may be slowing more than expected."
A renewal of old concerns -- geopolitical issues, economic growth -- is driving the market to assume a risk-off stance of Thursday. In addition to the political situation in the Ukraine, the Philly Fed -- an important real-time gauge of the economy -- retreated in February. While the +16 reading remains in 'expansionary' territory (anything above '0'), the slowdown comes on the heels of a very strong January reading (+23) and against FactSet consensus expectations for a +22 reading.
The combination of increasing geopolitical concerns and the potential the economy may be slowing more than expected sent the VIX back up to 24, and drove a decline in equities as investors turned to bonds and gold -- both traditional investor perceived 'safe havens'.
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Coincidentally, on Monday, Morgan Stanley's chief equity strategist penned an article writing that between the big hit to the US consumer - now that stimmies are no longer funding the relentless spending spree -and the potential for sharp escalation in the Ukraine conflict, "materially increases the odds of a polar vortex for the economy and earnings."
The strategist recommends investors position defensively for more downside.
$Dow Jones Industrial Average (.DJI.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Invesco QQQ Trust (QQQ.US)$ $Bank of America (BAC.US)$ $Chevron (CVX.US)$ $Berkshire Hathaway-B (BRK.B.US)$ $Tesla (TSLA.US)$ $Apple (AAPL.US)$ $ARK Innovation ETF (ARKK.US)$
Goldman Sachs, traditionally one of the biggest sellside cheerleaders cautions in its Midday Market Intelligence note, one of the reasons for the sharp drop in risk assets today is not just the resurgence in geopolitical concerns but also "the potential the economy may be slowing more than expected."
A renewal of old concerns -- geopolitical issues, economic growth -- is driving the market to assume a risk-off stance of Thursday. In addition to the political situation in the Ukraine, the Philly Fed -- an important real-time gauge of the economy -- retreated in February. While the +16 reading remains in 'expansionary' territory (anything above '0'), the slowdown comes on the heels of a very strong January reading (+23) and against FactSet consensus expectations for a +22 reading.
The combination of increasing geopolitical concerns and the potential the economy may be slowing more than expected sent the VIX back up to 24, and drove a decline in equities as investors turned to bonds and gold -- both traditional investor perceived 'safe havens'.
The strategist recommends investors position defensively for more downside.
$Dow Jones Industrial Average (.DJI.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Invesco QQQ Trust (QQQ.US)$ $Bank of America (BAC.US)$ $Chevron (CVX.US)$ $Berkshire Hathaway-B (BRK.B.US)$ $Tesla (TSLA.US)$ $Apple (AAPL.US)$ $ARK Innovation ETF (ARKK.US)$
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Fund managers increase cash holdings to highest level since early days of pandemic, as many are worried about global growth fears reducing and liquidity concerns becoming amplified.
Average cash holdings among investors jumped to 5.3 % this month, up from 5% in January, according to a closely watched survey by Bank of America of fund managers with a combined $1tn in assets.
Morever, UBS says wealthy investors are hanging on to ca...
Average cash holdings among investors jumped to 5.3 % this month, up from 5% in January, according to a closely watched survey by Bank of America of fund managers with a combined $1tn in assets.
Morever, UBS says wealthy investors are hanging on to ca...
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The biggest jump in inflation in 40 years has driven short sellers to increase their bets against consumer discretionary stocks to the highest level in over a year, according to S&P Global Market Intelligence.
Short interest in consumer discretionary stocks reached 4.83% at the end of January, the highest level for the sector since mid-January 2021, the data shows.
Three of the 10 most-shorted stocks at the end of January were co...
Short interest in consumer discretionary stocks reached 4.83% at the end of January, the highest level for the sector since mid-January 2021, the data shows.
Three of the 10 most-shorted stocks at the end of January were co...
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![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined"){kind=small}
The sector ETFs continue to present opportunities and gathered record net flows of $10.9bn in January.
According to FT, in dollar terms, just $7.4bn was put to work in US equity ETFs in January, compared to $87bn in December and a monthly average of $48bn during 2021 as a whole.
Global flows into ETFs focused on technology stocks — the US trump card and typically a highly popular sector — dwindled to just $400mn, while energy and utilities ETFsattracted a ...
According to FT, in dollar terms, just $7.4bn was put to work in US equity ETFs in January, compared to $87bn in December and a monthly average of $48bn during 2021 as a whole.
Global flows into ETFs focused on technology stocks — the US trump card and typically a highly popular sector — dwindled to just $400mn, while energy and utilities ETFsattracted a ...
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follow @Molly wealth talk and you can find more investment opportunities ![]()
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$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Hang Seng Index (800000.HK)$
$S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Hang Seng Index (800000.HK)$
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On Monday, oil prices hit their highest level in more than seven years due to fears that a possible invasion of Ukraine by Russia could trigger U.S. and European sanctions that would disrupt exports from the world's top producer in an already tight market.
Acco...
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Molly wealth talk OP Your Average Trader : Like you, I am not an expert on geopolitics, so we should be cautious about the Wall Street's opinions.
But I agree that it is necessary for investors to pay attention to the Fed policies and U.S. economic fundamentals- which should be the main drivers of equity returns.