ā 3 Things Stopping The S&P500 From Going Higher
US stocks may struggle until these change ā
.
š Treasury Yields.
Bond yields on the 10-year note have increased by a third over the past month.
The result? Investors may be rewarded more for buying these assets as opposed to
equities ā
Causing a rotation that's doomed to sink risky stocks.
š Undervalued Europe.
With the S&P500 now trading at DOUBLE its average P/E (45 now vs 22.3 usual),
investors are likely to pull money out of the US and focus on markets where
valuations are less lofty.
š China's Growth.
Last year, China dethroned the USA as the world's #1 economy in terms of FDI
[WSJ].
Countries poured $163 billion into the former whilst only adding $134 billion to
the latter ā
Signaling that there's a new game in town.
What does this all tell us?
1ļøā£ Bonds are retaking control of investor sentiment.
2ļøā£ Value and fundamentals are now driving prices instead of growth and
speculation.
3ļøā£ Narratives change quickly, hence it's important to keep track of them
consistently.
Insights to Improve Your Investing - Rashique Rahman
#investing #finance #entrepreneurship #online #success
US stocks may struggle until these change ā
.
š Treasury Yields.
Bond yields on the 10-year note have increased by a third over the past month.
The result? Investors may be rewarded more for buying these assets as opposed to
equities ā
Causing a rotation that's doomed to sink risky stocks.
š Undervalued Europe.
With the S&P500 now trading at DOUBLE its average P/E (45 now vs 22.3 usual),
investors are likely to pull money out of the US and focus on markets where
valuations are less lofty.
š China's Growth.
Last year, China dethroned the USA as the world's #1 economy in terms of FDI
[WSJ].
Countries poured $163 billion into the former whilst only adding $134 billion to
the latter ā
Signaling that there's a new game in town.
What does this all tell us?
1ļøā£ Bonds are retaking control of investor sentiment.
2ļøā£ Value and fundamentals are now driving prices instead of growth and
speculation.
3ļøā£ Narratives change quickly, hence it's important to keep track of them
consistently.
Insights to Improve Your Investing - Rashique Rahman
#investing #finance #entrepreneurship #online #success