What investors need to know about October’s complicated stock-market history

While September lived up to its reputation as a brutal month for stocks, October tends to be a “bear-market killer,” associated with historically strong returns, especially in midterm election years. October, however, is also associated with historic market plunges. And skeptics are warning investors that negative economic fundamentals could overwhelm seasonal trends as what’s traditionally … Read more

Underperformance is ‘abysmal’ in the long run for active fund managers

The S&P 500 may be trading around 2022 lows, but a new report finds active managers are having their best year since 2009. The numbers suggest they still have a long way to go, though. S&P Global recently published its Mid-Year 2022 SPIVA US Scorecard, which measures how well US actively managed funds perform against … Read more

Stocks and bonds are ‘discounting for a disaster’ after the worst stretch for investors in 20 years

Things could always get worse. The S&P 500 index SPX, -1.51% on Friday cemented its worst monthly percentage fall since the pandemic lockdowns of March 2020, but also joined the Dow Jones Industrial Average DJIA, -1.71% and Nasdaq Composite Index COMP, -1.51% in booking the worst, first 9-month stretch since 2002, according to Dow Jones … Read more

‘Painfully slow capitulation’: Why investors keep getting inflation wrong

A brutal third quarter in financial markets came to a close on Friday and one thing is overwhelmingly clear: Inflation is the single most important factor driving asset valuations right now and yet few, if any, people are able to accurately predict where it’s likely to go . The reason? Professional forecasters, policy makers and … Read more

This 1930s fund is beating the S&P 500 in 2022 – by doing nothing

An 87-year-old mutual fund formed in the depths of the Great Depression is beating the S & P 500 this year. Its strategy: Do nothing. What is today the Voya Corporate Leaders Trust Fund was first established in 1935 as a concentrated portfolio of 30 blue chip companies that were considered unlikely to go bankrupt … Read more

Here’s two ways to play the volatility and two stocks to scoop up

Last week’s more than 4% drop in the S & P 500 wasn’t unusual. In the current quarter alone, the large-cap index has moved by a similar amount on seven occasions. How are professional investors trading amid such volatility, and what are they buying? Hedging bets Speaking to CNBC “Pro Talks,” Investment Director Neil Veitch … Read more

This stock market rout looks like the dot-com bust of 2000, says investing guru

Forget about buying the dip, for a while. That’s John Duffy, founder and CEO of Trending Stocks, about why he thinks the stock market could be in for a long, early 2000s-style unwind akin to what happened in the wake of the dot-com bust. Duffy, who launched his investing platform this spring, pointed to similarities … Read more

In this turbulent market, there are opportunities everywhere

In this turbulent market, opportunities abound, according to JPMorgan’s Mary Callahan Erdoes. Stocks have been trading in a bear market this year as investors navigate inflation, Federal Reserve interest rate hikes and talk of a potential recession. On Wednesday, the S&P 500 rebounded after hitting a fresh low for the year in the prior session. … Read more

Why a rising 10-year Treasury yield is rattling financial markets as it nears 4%

The 10-year Treasury yield, a vital benchmark that influences a vast array of consumer borrowing costs, is on its way to hitting 4% for the first time in at least 12 years – a development that’s starting to ripple across financial markets. The rate TMUBMUSD10Y, 3,993% soared to as high as 3.988% on Tuesday – … Read more

Why 2-year Treasury yields are ‘the base problem’ for the struggling stock market, according to this Morgan Stanley portfolio manager

It’s going to be tough for the US stock market to make much headway bouncing back from the bear market with two-year Treasury yields at or above 4%, according to Andrew Slimmon, an equity portfolio manager at Morgan Stanley Investment Management. “It’s hard to convince investors to take risk when the two-year risk-free rate is … Read more