Offbeat: Stocks slip as Wall Street's attention turns to the Fed - - PressFrom - US
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OffbeatStocks slip as Wall Street's attention turns to the Fed

17:21  08 november  2018
17:21  08 november  2018 Source:   cnbc.com

A simple way to beat a bear market

A simple way to beat a bear market How many people stayed 100% in equities through the last two crashes? And yes, it’s true that stocks have been great investments over the long term. But it’s also true that all sorts of signals which long track records have been flashing amber or even red for some time. Some very smart experts fear stocks are not a good investment at these levels, or that a major crash may be on the cards (or both). GMO in Boston sees negative medium-returns from here from all major stock markets except those in emerging markets. Research Affiliates in Newport Beach, Calif., doesn’t think the outlook is much better.

Stock market scratches out gains as Wall Street turns attention to. Separately, on Friday, Fed Chairman Jerome Powell is set to deliver a speech about monetary policy that investors will watch closely for further clues about the Stock Market Today: Futures Slip as Eyes Turn to Fed ' s Yellen.

The Wall Street Journal. NEW YORK—Gold futures slid to a one-week low on Thursday as some investors bet that a reduction in Federal Reserve stimulus was on the way after U. S . congressional leaders outlined a budget compromise.

Stocks declined Thursday after big gains in the previous session as traders focused on the latest monetary policy decision from the Federal Reserve.

The Dow fell 15 points as Procter & Gamble underperformed. The S&P 500 slipped 0.25 percent, led lower by the consumer discretionary sector. The Nasdaq lagged, falling 0.4 percent as Qualcomm fell sharply.

The Fed is expected to keep rates unchanged, but traders will look for clues about the central bank's futures moves on monetary policy. The Fed has hiked rates three times this year and is forecast to raise them once more before year-end.

One ominous sign that another recession is looming

One ominous sign that another recession is looming ‘Cash is considered a four-letter word on Wall Street, figuratively as well as literally.’

Wall Street is an eight-block-long street running roughly northwest to southeast from Broadway to South Street , at the East River, in the Financial District of Lower Manhattan in New York City.

The Federal Reserve is due to begin two days of meetings on Tuesday ahead of announcing its rate decision on Wednesday, while the Bank of Japan meets on "The markets will remain focused on the Fed even if no monetary policy change is expected in the short term," noted Saxo Bank (France)

Thursday's moves come after the major stock indexes posted sharp gains following the U.S. midterm election. The S&P 500 and Dow both rose more than 2 percent on Wednesday, notching their biggest post-midterm elections gains since 1982.

The outcome, with Republicans holding control of the Senate and the Democrats getting back control of the House, was widely expected and lifted another layer of uncertainty among the many that investors are dealing with.

"Generally, after the midterms, the market is very positive," said Peter Mallouk, president and CEO of Creative Planning. "It's reacting to a sense of clarity."

With this government setup, Wall Street expects President Donald Trump's business-friendly policies to continue while some of his more disruptive market actions will have a check on them.

The result also leaves the door open for bipartisan cooperation on infrastructure. Both Trump and Democrats have expressed interest in pushing forward an infrastructure measure.

Peter Cardillo, chief market economist at Spartan Capital Securities, said this outcome clears the path for stocks to rally into the end of 2018.

"We're in the midst of a good rally that could continue into year-end," Cardillo said. "I don't see a threat of Trump's economic policies being reversed." He added: "There's enough economic substance to continue higher."

This Wall Street guru was outsmarted by his own childhood stock picks.
Cambria Investments’ co-founder Meb Faber wrote a postcard to his father as a child outlining his fantasy portfolio.

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