Last week's partial yield curve inversion following a"dovish surprise" from the Federal Reserve is bearish for the stock market and that means investors should"remain defensively positioned," Morgan Stanley's U.S. equity strategist Michael Wilson said on Monday.
On Friday, the yield on 3-month Treasury bills rose above that of 10-year Treasury notes. Part of the broader inversion pattern, the ascent of the 3-month yield above the 10-year yield is an important economic recession indicator. Additionally, this was the first time these two yields inverted since 2007.
The Fed said it will begin reducing the bonds on its balance sheet in May and end the roll-off of Treasurys in September. Called quantitative tightening, this program is the unwind of a decade-long program of stimulating financial markets through a quantitative easing program. But, following the announcement, Wilson said the central bank"did not get the reaction they expected as the yield curve immediately inverted.
Wilson said that, before the Fed's announcement, it"seemed unlikely" that the central bank would have"a more dovish policy message.
Message is short rates coming down.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The last time corporate profits plunged into a recession, stocks kept rallying — but Morgan Stanley says there are now 8 big differences that could send the market tumblingThe last corporate earnings recession didn't hurt stocks much, but Morgan Stanley says another one is coming and poses a bigger threat to the market. Let it burn. The people are hurting. The rich need to pay the fuck attention, and if they can afford stocks, they can afford to ignore the poor. So let their precious market fall. I don't care anymore. alternativetitle - the stock market is good, here's what the haters have to say
Source: BusinessInsider - 🏆 729. / 51 Read more »
JP Morgan and Goldman Sachs are getting more bullish on IndiaIndia has the 'best growth story' among global emerging markets, said J.P. Morgan, as Goldman Sachs raised its rating on Indian stocks to 'overweight' in a Monday report. ''''''!!!! Thank The i, WAS Very!II!I!I
Source: CNBC - 🏆 12. / 72 Read more »
Stocks have room to run — but the global economy must pick up first, says JP MorganJ.P. Morgan says there's still room for a global run-up in equities — but 'the most important thing' is whether the world economy responds to efforts to spur its growth.
Source: CNBC - 🏆 12. / 72 Read more »
Turkish watchdogs probe JP Morgan after lira plungeBanking watchdogs are acting on complaints regarding a JP Morgan report on Friday that hurt reputation of Turkish banks and caused volatility in financial markets, Reuters reports. U.S Securities & Exchange Commissioner Kara M. Stein refers J.PMorgan as 'Criminals' 'I am troubled by repeated instances of noncompliance at these global financial inst, which may be indicative of a continuing culture that does not adequately support LEGAL and ETHICAL behaviour' Doviz piyasasinda yaptiklari Manupulatif islemlerden dolayi J.P Morgan da dahil 16 Banka ABD & AB de $14 Milyar CEZA yedi. BDDK da, ayni duzeyde CEZA vermeli. HMBakanligi BeratAlbayrak HMBakanligi NureddinNebati CentralBank_TR … … … … via markets
Source: trtworld - 🏆 101. / 63 Read more »