Bloomberg Surveillance Stocks and Bonds Jolt Traders, Geopolitics in Focus
7 snips
Jan 13, 2025 Dive into the evolving landscape of finance, where rising interest rates disrupt equity markets and reshape investor sentiment. The conversation tackles how geopolitical events drive shifts towards alternative energy, including the resurgence of small-scale nuclear. Insights on the California fires reveal their devastating impact on utilities and insurance. Plus, there's a fascinating look at mental health support and innovative strategies for resilience in business amidst uncertainty. A mix of serious topics with a dash of cultural commentary keeps it engaging!
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Market Correction
- The U.S. stock market is nearing record multiples, making it vulnerable to rising yields.
- Markets outside the U.S. have already experienced corrections since October.
Interest-Sensitive Equities
- Interest-sensitive equities like property companies and utilities will likely struggle.
- Consider the impact of rising yields on companies with long-duration cash flows.
Inflation and Yields
- The 10-year yield is expected to rise above 5% due to market complacency on inflation.
- Several inflationary forces like protectionism and deficits are at play.