The Federal Reserve won't disturb the proud market for the time being

Things have changed quite a bit since the FOMC meeting in April — except perhaps that US junk bond yields are still at record lows. However, the Federal Reserve may not react too strongly, and its statement may not change in any way, turning the focus to any hawkish hints surrounding the reduction schedule. Although this may spur a stronger dollar, 10-year US Treasury bonds are around 1.50%, showing confidence in the Federal Reserve's framework; this framework is something Federal Reserve Chairman Powell will want to keep. Of course, the policy shift will not be easy. Given that the number of people employed on non-farm land increased by less than 600,000 in April and May

新浪財經Jun 16, 2021 16:39

Has the sell-off in US stocks just begun?

US stocks have fallen sharply recently, but this should come as no surprise to anyone. The valuations of many stocks are already at historic highs. Now, as interest rates rise, most of the stock market faces the risk of a revaluation. One very important reason for the sharp rise in US stocks before is that low interest rates provide support for high valuations. Interest rates have risen sharply in recent weeks. This makes stocks more expensive compared to bond yields. If stock valuations need to be readjusted to this change in interest rates, it means that US stocks may experience a more severe sell-off, with a decline of more than 20%. The price-earnings ratio of the S&P 500 index starts at 202

英為財情InvestingMar 1, 2021 16:11