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Citi says investors have up to six weeks to continue to squeeze bears after inflation surprise

Citi says investors have up to six weeks to continue to squeeze bears after inflation surprise

Well, that was something. Inflation is slightly lower than expected, then the rockets are out – the best one-day percentage increase for the S&P 500 SPX since April 6, 2020 and the best one-day percentage rise for the Nasdaq Composite since March 24, 2020. If inflation has really peaked, there are really only two questions: …

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Take advantage now of this sweet spot on the bond market to strengthen your portfolio

Take advantage now of this sweet spot on the bond market to strengthen your portfolio

The bond market is now offering investors a bargain, with short to medium maturities offering a good combination of risk and reward. When interest rates rise, bond prices fall. The longer a bond’s maturity, the more sensitive its market value will be to changes in interest rates. This means that as the Federal Reserve continues …

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'Flimsy' Treasury market risks 'large-scale forced selling' or surprise that leads to breakdown, says BofA

‘Flimsy’ Treasury market risks ‘large-scale forced selling’ or surprise that leads to breakdown, says BofA

The deepest and most liquid fixed income market in the world is in deep trouble. For months, traders, academics and other analysts have worried that the $23.7 trillion Treasuries market could be the source of the next financial crisis. Then last week, US Treasury Secretary Janet Yellen acknowledged concerns about a potential breakdown in government …

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Opinion: The stock market is in trouble.  This is because the bond market is “very close to a crash”.

Opinion: The stock market is in trouble. This is because the bond market is “very close to a crash”.

Don’t assume the worst is over, says investor Larry McDonald. There is talk of a pivot in Federal Reserve policy as interest rates rise rapidly and stocks continue to fall. Both can continue. McDonald, founder of The Bear Traps Report and author of “A Colossal Failure of Common Sense,” which describes the 2008 bankruptcy of …

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High US inflation drives market expectations for a 5% or higher fed funds rate in a few months

High US inflation drives market expectations for a 5% or higher fed funds rate in a few months

With inflation showing no signs of abating, financial markets are expecting a 5% federal funds rate by March, which should lead to more volatility in stocks, bonds and currencies. Barclays sees the benchmark US interest rate target rise to 5% to 5.25% by February – from a current level of between 3% and 3.25% – …

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