Bloomberg Businessweek
Navigating the Powell Pivot
Dec 14, 2023
Guests Abigail Doolittle and Michael MacKenzie discuss Jerome Powell's policy shift and its impact on markets. Maria Korsnick talks about nuclear power combatting climate change. Joel Weber and Stephen Stapczynski discuss how traders made a fortune switching off a nation's gas supply.
43:46
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Quick takeaways
- The rapid decline in treasury yields has caught investors off guard, raising questions about future yield movement and the overall fixed income landscape.
- Recent market rotation away from mega-cap tech stocks towards small caps and value stocks presents opportunities for investors to focus on sectors that have room for catch-up.
Deep dives
Rapid decrease in treasury yields surprises investors
Over the past weeks, there has been a dramatic decline in treasury yields, with the 10-year yield dropping from 5% to 3.9%. This rapid decrease has caught many investors off guard, leading them to rethink their strategies. Some expected the 10-year yield to reach 4% by the end of 2024, but the recent movement has already surpassed that target. The move has raised questions about where yields will go next and whether the market has gone too far too fast.
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