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Bond market close to sending biggest recession signal yet

Bond market close to sending biggest recession signal yet

Finance
Scott Olson | Getty ImagesAs Wall Street economists up the odds for a recession in the coming year, the bond market is sending its own scary warning about an economic downturn.Various parts of the yield curve have been inverted, but the traditionally watched 2-year to 10-year spread looks set to invert any day now, with the curve at its flattest level since 2007.The 10-year yield, at its low yield of 1.64% Monday came less than 6 basis points above the 2-year yield, which was at 1.58% in afternoon trading. The spread broke below 10 basis points last week. An inverted curve simply means a shorter-term interest rate is higher than the longer-term one that it is being compared too, and that inversion has been a reliable recession signal. "It's the whole idea that the Fed is making a mistake. ...
Not sure what to do amid this market volatility? Here are the answers to your top questions

Not sure what to do amid this market volatility? Here are the answers to your top questions

Finance
If the market's wild ride has you confused about your next investment move, you aren't alone.You may be wondering, ``Do I really do nothing with my stocks or 401(k), like many advisors suggest? " or "when is the right time to buy or sell?"No one likes to lose money, but panicking isn't the right answer, either.Changes to one's investments and financial plan under pressure raises the opportunity to make mistakes, which could be costly now and in the future.Mitch Goldberg,ClientFirst StrategyIn fact, experts say you should be prepared for market downturns. "I tell clients and prospective clients that if a bear market is all it takes to ruin your financial future, then you're not investing and planning correctly," said Mitch Goldberg, president of ClientFirst Strategy, an investment firm that...
What to do with your 401(k) as the market tanks

What to do with your 401(k) as the market tanks

Finance
There's one market correlation you can count on: When the markets plummet, calls to 401(k) plan providers go up.If you're like a lot of people, you're also reaching for the phone — or just looking for reassurance that your nest egg will still be OK.Moyo Studio | E+ | Getty ImagesMonday's eye-popping market drop is no exception. Trade war fears sent the Dow Jones Industrial Average down by more than 750 points on Monday. Meanwhile, the S&P 500 and Nasdaq Composite each entered their sixth consecutive day of losses.Despite the scary headlines, financial advisors have one message for you: Don't panic. "Most people should do what's good for them, agnostic of what the market is doing," said Aaron Pottichen, senior vice president at Alliant Retirement Consulting in Austin, Texas. "No one can
China kicks off new Shanghai tech board as it tests new ways to improve volatile stock market

China kicks off new Shanghai tech board as it tests new ways to improve volatile stock market

Finance
Chairman of the China Securities Regulatory Commission Yi Huiman presides over the launch ceremony of the SSE STAR Market or its Nasdaq-style tech board during the 11th Lujiazui Forum 2019 on June 13, 2019 in Shanghai, China.Zhang Hengwei | China News Service | VCG via Getty ImagesChina is trying again to boost the credibility of its volatile stock market.On Monday, China launched a new Nasdaq-style tech board — the Science and Technology Innovation Board, or "STAR Market" — on which 25 companies were listed, as the country attempts to address investor concerns like market volatility and lack of governance.China boasts the world's second-largest equity market, just behind the U.S. More foreign capital is expected to flow into mainland Chinese stocks with their inclusion in major investmen
Recession threat is rising as earnings roll over, market bear David Rosenberg warns

Recession threat is rising as earnings roll over, market bear David Rosenberg warns

Finance
One of Wall Street's biggest long-time bears is painting a painful picture for stocks as earnings season goes into full gear.Gluskin Sheff's David Rosenberg warns earnings are "rolling over" and ominous economic data suggests the economy is on the brink of a recession. "Maybe a recession is not here. But it's certainly suggesting of a significant growth turndown right now in the U.S. economy," he told CNBC's "Futures Now " last Thursday.Even though the Dow, S&P 500 and Nasdaq posted its worst week since May, they're still trading just around one percent from all-time highs.But the robust levels are not deterring Rosenberg's bearishness. "The stock market peaked on October of 2007 and the recession started two months later," he said. "This is one of these rare periods where earnings ar...