Trump says he would like to see the Federal Reserve lower interest rates

President Donald Trump once again took a shot at the Federal Reserve on Tuesday, saying he would like to see lower rates from the U.S. central bank in answering a question on the state of the economy and financial markets. “I’d like to see the Fed with a lower interest rate. I think we have much more of a Fed problem than we have a problem with anyone else,” said Trump to reporters outside the White House. The Fed has raised rates three times this year and is expected to hike once more before ye


President Donald Trump once again took a shot at the Federal Reserve on Tuesday, saying he would like to see lower rates from the U.S. central bank in answering a question on the state of the economy and financial markets. “I’d like to see the Fed with a lower interest rate. I think we have much more of a Fed problem than we have a problem with anyone else,” said Trump to reporters outside the White House. The Fed has raised rates three times this year and is expected to hike once more before ye
Trump says he would like to see the Federal Reserve lower interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert
Keywords: news, cnbc, companies, times, reserve, rate, trump, rates, interest, think, monetary, fed, federal, market, lower, problem, president


Trump says he would like to see the Federal Reserve lower interest rates

President Donald Trump once again took a shot at the Federal Reserve on Tuesday, saying he would like to see lower rates from the U.S. central bank in answering a question on the state of the economy and financial markets.

“I’d like to see the Fed with a lower interest rate. I think the rate’s too high. I think we have much more of a Fed problem than we have a problem with anyone else,” said Trump to reporters outside the White House. “I think your tech stocks have some problems.”

The Fed has raised rates three times this year and is expected to hike once more before year-end. The central bank also expects to hike three times in 2019. Some investors blame the Fed’s rate increases for the market turmoil that has caused the Dow Jones Industrial Average to erase its gain for the year on Tuesday.

Trump has repeatedly gone after the Fed for tightening monetary policy in the U.S. On Oct. 10, he said the Fed had “gone crazy” by continuing to raise rates. The next day, Trump said the Fed caused a correction in the stock market. Finally, Trump called the Fed his “biggest threat” because they were “raising rates too fast.”

A sitting president criticizing the Fed is rare. Trump’s predecessors have largely refrained from commenting on the direction of monetary policy.

This is breaking news. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert
Keywords: news, cnbc, companies, times, reserve, rate, trump, rates, interest, think, monetary, fed, federal, market, lower, problem, president


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Barclays: Stocks will go nowhere next year as tax cut boost will fade

Gains in the U.S. stock market will be hard to find in 2019 as one-time boosts like tax cuts and government spending will fade and the U.S.-China trade conflict continues, according to Barclays. He also noted that heightened U.S.-China trade tensions actually boosted trade this year as businesses front-loaded some of their orders before tariffs kick in. Companies got a big boost after President Donald Trump signed a bill late last year that cut the federal corporate tax rate to 21 percent from 3


Gains in the U.S. stock market will be hard to find in 2019 as one-time boosts like tax cuts and government spending will fade and the U.S.-China trade conflict continues, according to Barclays. He also noted that heightened U.S.-China trade tensions actually boosted trade this year as businesses front-loaded some of their orders before tariffs kick in. Companies got a big boost after President Donald Trump signed a bill late last year that cut the federal corporate tax rate to 21 percent from 3
Barclays: Stocks will go nowhere next year as tax cut boost will fade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, cut, tax, earnings, tariffs, growth, trump, stocks, boost, uschina, deshpande, corporate, trade, barclays, fade, likely, spending


Barclays: Stocks will go nowhere next year as tax cut boost will fade

Gains in the U.S. stock market will be hard to find in 2019 as one-time boosts like tax cuts and government spending will fade and the U.S.-China trade conflict continues, according to Barclays.

Maneesh Deshpande, head of U.S. equity strategy at Barclays, said in a note Monday that he expects the S&P 500 to end next year at 3,000, which is the same as his year-end target for 2018. The S&P 500 closed at 2,690.73 on Monday.

“We expect moderate 2019 EPS growth of 7% after a remarkable 2018 run (~25% y⁄y) as several one-off drivers fade,” Deshpande said, referring to lower corporate and personal taxes, as well as a bipartisan bill that increased government spending. He also noted that heightened U.S.-China trade tensions actually boosted trade this year as businesses front-loaded some of their orders before tariffs kick in.

“A common thread which runs through these diverse set of drivers is that their impact on growth rates is likely to be one-off,” Deshpande said. “Hence … both earnings and economic growth are likely to normalize during 2019.”

S&P 500 earnings have been on fire this year, rising at least 25 percent in the first three quarters of the year. Companies got a big boost after President Donald Trump signed a bill late last year that cut the federal corporate tax rate to 21 percent from 35 percent. Back in February, Trump also signed a bill that extended government spending for two years and increased budget caps by about $300 billion.

But as these one-time catalysts lose steam, Deshpande said the U.S.-China trade skirmish could take “a bigger bite out of earnings growth” next year.

“Our base case is that trade tensions are unlikely to abate,” Deshpande said. “The administration is likely to focus even more heavily on trade policy since it falls under the purview of executive action as the legislative channel is now closed after the results of the mid-term elections.”

China and the U.S. have exchanged tariffs on billions of dollars worth of each other’s goods this year as the Trump administration adopts a more protectionist stance on trade. These levies have raised concern this year that tighter trade conditions could hinder global economic growth as well as corporate profits.

“In our opinion, the impact of these tariffs is not currently factored into the consensus forecasts and will only be reflected once companies give explicit guidance,” Deshpande noted.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, cut, tax, earnings, tariffs, growth, trump, stocks, boost, uschina, deshpande, corporate, trade, barclays, fade, likely, spending


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dow set for 350-point drop as Target slides, tech gets hit again

U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again. ET, Dow Jones Industrial Average futures were down 369 points, pointing to a loss of 350.44 at the open. The Dow fell nearly 400 points in the previous session. S&P 500 and Nasdaq 100 futures pointed to a negative open too. Kohl’s, L Brands and Macy’s — which are also in the XRT — fell 11.2 percent, 9.4 percent and 4.1 percent, respec


U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again. ET, Dow Jones Industrial Average futures were down 369 points, pointing to a loss of 350.44 at the open. The Dow fell nearly 400 points in the previous session. S&P 500 and Nasdaq 100 futures pointed to a negative open too. Kohl’s, L Brands and Macy’s — which are also in the XRT — fell 11.2 percent, 9.4 percent and 4.1 percent, respec
Dow set for 350-point drop as Target slides, tech gets hit again Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert, spriha srivastava
Keywords: news, cnbc, companies, stock, futures, sp, hit, drop, points, pointed, set, previous, popular, 350point, slides, gets, fell, open, tech, dow, target, xrt


Dow set for 350-point drop as Target slides, tech gets hit again

U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again.

At around 8:51 a.m. ET, Dow Jones Industrial Average futures were down 369 points, pointing to a loss of 350.44 at the open. The Dow fell nearly 400 points in the previous session. S&P 500 and Nasdaq 100 futures pointed to a negative open too.

Target fell 11.2 percent in the premarket after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.

The decline sent the SPDR S&P Retail ETF (XRT) down 3.3 percent before the bell. Kohl’s, L Brands and Macy’s — which are also in the XRT — fell 11.2 percent, 9.4 percent and 4.1 percent, respectively.

Futures also fell as members of the popular “FAANG” trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Facebook fell 2.9 percent, while Amazon, Apple and Netflix all dropped at least 3 percent. Alphabet’s stock dropped 2.4 percent.

On Monday, the FAANG members all closed down at least 20 percent from their one-year highs, pressuring the major indexes.

“Short term, unexpected weakness in the tech sector could have a significant impact on the global economy, adding to what already looks like a soggier macro environment,” said Dario Perkins, managing director of global macro at TS Lombard, in a note. “Additional retrenchment in the FAANGs could also undermine the broader US stock market.”


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fred imbert, spriha srivastava
Keywords: news, cnbc, companies, stock, futures, sp, hit, drop, points, pointed, set, previous, popular, 350point, slides, gets, fell, open, tech, dow, target, xrt


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dow plunges about 400 points as Apple, Amazon and Facebook fall

Stocks dropped sharply on Monday as the biggest and most popular technology stocks plunged. Apple led tech shares lower after The Wall Street Journal reported the company has cut production orders for the new iPhones unveiled earlier this year. Facebook shares dropped 5.7 percent as the company was hit with more negative publicity regarding the fallout from its handling of the 2016 election and foreign influence on its platform. A WSJ report said Facebook CEO Mark Zuckerberg blamed COO Sheryl Sa


Stocks dropped sharply on Monday as the biggest and most popular technology stocks plunged. Apple led tech shares lower after The Wall Street Journal reported the company has cut production orders for the new iPhones unveiled earlier this year. Facebook shares dropped 5.7 percent as the company was hit with more negative publicity regarding the fallout from its handling of the 2016 election and foreign influence on its platform. A WSJ report said Facebook CEO Mark Zuckerberg blamed COO Sheryl Sa
Dow plunges about 400 points as Apple, Amazon and Facebook fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, adam jeffery, saul loeb, afp, getty images, marlene awaad, bloomberg, qilai shen, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, plunges, fall, company, shares, times, 400, points, apple, tech, fell, dow, stocks, report, amazon, facebook, technology, dropped


Dow plunges about 400 points as Apple, Amazon and Facebook fall

Stocks dropped sharply on Monday as the biggest and most popular technology stocks plunged. Facebook and Apple led the losses.

The Dow Jones Industrial Average fell 395.78 points to 25,017.44. The S&P 500 dropped 1.7 percent to 2,690.73 as the technology sector pulled back 3.8 percent. The tech-heavy Nasdaq Composite lagged, falling 3 percent to close at 7,028.48 as Amazon dropped 5.1 percent.

The popular “FAANG” trade made up of Facebook, Amazon, Apple, Netflix and Alphabet is now in a bear market with each member down more than 20 percent from their one-year highs.

“It’s going to require a recovery in tech to make things happen,” said Greg Luken, CEO of Luken Investment Analytics. “I think where we are in tech, we’re going to see tough sledding towards the end of the year. I think stocks that are down will see further selling pressure.”

Apple led tech shares lower after The Wall Street Journal reported the company has cut production orders for the new iPhones unveiled earlier this year. The company’s stock fell nearly 4 percent and fell back into a bear market, down 20 percent from its 52-week high.

Facebook shares dropped 5.7 percent as the company was hit with more negative publicity regarding the fallout from its handling of the 2016 election and foreign influence on its platform. A WSJ report said Facebook CEO Mark Zuckerberg blamed COO Sheryl Sandberg for how the company handled the situation. This report comes after backlash from a New York Times article detailing how Facebook company ignored and then tried to hide that Russia used the platform to disrupt the U.S. election in 2016.

Tech shares also fell after The Financial Times reported Chinese authorities have alleged “massive evidence” of antitrust violations by Samsung, SK Hynix and Micron Technology. The report also said China would deepen its investigation into the three companies, which are the largest memory-chip manufacturers in the world.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, adam jeffery, saul loeb, afp, getty images, marlene awaad, bloomberg, qilai shen, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, plunges, fall, company, shares, times, 400, points, apple, tech, fell, dow, stocks, report, amazon, facebook, technology, dropped


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Treasury yields slip amid weak housing data, global trade worries

Treasury yields fell on Monday after the release of weaker-than-forecast housing data while concerns over global trade plagued investors. The benchmark 10-year note yield slipped to 3.054 percent while the short-term two-year yield dipped to 2.775 percent. Bond yields move inversely to prices. Homebuilder sentiment dropped to its lowest level since August 2016 this month amid rising mortgage rates and unrelenting price growth. The rise in bond prices also comes as U.S. stocks sold off, adding to


Treasury yields fell on Monday after the release of weaker-than-forecast housing data while concerns over global trade plagued investors. The benchmark 10-year note yield slipped to 3.054 percent while the short-term two-year yield dipped to 2.775 percent. Bond yields move inversely to prices. Homebuilder sentiment dropped to its lowest level since August 2016 this month amid rising mortgage rates and unrelenting price growth. The rise in bond prices also comes as U.S. stocks sold off, adding to
Treasury yields slip amid weak housing data, global trade worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, sam meredith
Keywords: news, cnbc, companies, global, slip, rates, treasury, weak, economy, data, trade, housing, bond, sentiment, sensitive, yields, amid, yield, interest, week, worries


Treasury yields slip amid weak housing data, global trade worries

Treasury yields fell on Monday after the release of weaker-than-forecast housing data while concerns over global trade plagued investors.

The benchmark 10-year note yield slipped to 3.054 percent while the short-term two-year yield dipped to 2.775 percent. Bond yields move inversely to prices.

Homebuilder sentiment dropped to its lowest level since August 2016 this month amid rising mortgage rates and unrelenting price growth.

“Builder sentiment is now joining the reality that housing has been slowing all year after hanging in pretty well this year,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, in a note.

“As the most interest rate sensitive area of the economy outside of auto’s, a moderation in housing was to be expected but what we’re seeing is just how sensitive the economy is to modest changes in interest rates that are historically low,” he said.

The rise in bond prices also comes as U.S. stocks sold off, adding to their steep losses from last week.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, sam meredith
Keywords: news, cnbc, companies, global, slip, rates, treasury, weak, economy, data, trade, housing, bond, sentiment, sensitive, yields, amid, yield, interest, week, worries


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Apple shares fall into bear market again after report of slashed iPhone production orders

Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders. The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September. Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal rep


Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders. The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September. Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal rep
Apple shares fall into bear market again after report of slashed iPhone production orders Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, aris oikonomou, afp, getty images
Keywords: news, cnbc, companies, xs, shares, fall, xr, bear, slashed, apple, production, iphone, report, suppliers, told, reported, journal, market, models, orders


Apple shares fall into bear market again after report of slashed iPhone production orders

Shares of Apple fell 4 percent on Monday after a report said the tech giant has cut down on iPhone production orders.

The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September.

Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal reported. It added that in the past week the company told suppliers it plans to trim production of the XR again.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: fred imbert, aris oikonomou, afp, getty images
Keywords: news, cnbc, companies, xs, shares, fall, xr, bear, slashed, apple, production, iphone, report, suppliers, told, reported, journal, market, models, orders


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dow set to fall 100 points as chip makers drag down tech

U.S. stock index futures indicated a lower open Friday a decline in semiconductor stocks pressured the overall technology sector. ET, Dow Jones Industrial Average futures were down 131 points, indicating a lower open of 112.27 points. Nasdaq 100 and S&P 500 futures also pointed to lower opening trades. The VanEck Vectors Semiconductor ETF (SMH) fell 3.4 percent in the premarket after Nvidia reported weaker-than-expected revenue for its previous quarter. The weakness in chip stocks dragged the te


U.S. stock index futures indicated a lower open Friday a decline in semiconductor stocks pressured the overall technology sector. ET, Dow Jones Industrial Average futures were down 131 points, indicating a lower open of 112.27 points. Nasdaq 100 and S&P 500 futures also pointed to lower opening trades. The VanEck Vectors Semiconductor ETF (SMH) fell 3.4 percent in the premarket after Nvidia reported weaker-than-expected revenue for its previous quarter. The weakness in chip stocks dragged the te
Dow set to fall 100 points as chip makers drag down tech Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: fred imbert, spriha srivastava
Keywords: news, cnbc, companies, lower, uk, et, drag, technology, makers, dow, points, futures, semiconductor, fall, previous, stock, tech, chip, set, sector, stocks, 100


Dow set to fall 100 points as chip makers drag down tech

U.S. stock index futures indicated a lower open Friday a decline in semiconductor stocks pressured the overall technology sector.

At around 7:20 a.m. ET, Dow Jones Industrial Average futures were down 131 points, indicating a lower open of 112.27 points. Nasdaq 100 and S&P 500 futures also pointed to lower opening trades.

The VanEck Vectors Semiconductor ETF (SMH) fell 3.4 percent in the premarket after Nvidia reported weaker-than-expected revenue for its previous quarter. The company also posted disappointing guidance, sending the stock down nearly 18 percent before the bell.

The weakness in chip stocks dragged the technology sector, with the Technology Select Sector ETF (XLK) falling 1.1 percent in the premarket.

investors also fretted over political developments overseas amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May.

In the previous session, major stock indexes snapped multi-day losing streaks as J.P. Morgan Chase led banks higher and iPhone maker Apple rebounded after dipping into bear market territory earlier this week.

A number of economic data are expected on Friday. Industrial production numbers are expected to be released at 9:15 a.m. ET, followed by a Quarterly Services Report at 10 a.m. ET, a Kansas City Fed Manufacturing Index at 11 a.m. ET and the Baker-Hughes Rig Count at 1:00 p.m. ET.

At 11:30 a.m. ET, Chicago Federal Reserve Bank President Charles Evans is due to speak about current economic conditions and monetary policy at a roundtable in Chicago.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: fred imbert, spriha srivastava
Keywords: news, cnbc, companies, lower, uk, et, drag, technology, makers, dow, points, futures, semiconductor, fall, previous, stock, tech, chip, set, sector, stocks, 100


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dow jumps after Trump says China wants to make trade deal

President Donald Trump said Friday that China “wants to make a deal” on trade with the United States, but he also warned that any pact has to be “reciprocal.” “China wants to make a deal,” Trump said, adding that China had recently sent a list of trade items the nation is open to compromise on. The president said that tariffs the United States recently imposed on a range of Chinese products have put pressure on that country to agree to a trade pact. Trump said, “China has taken advantage of the


President Donald Trump said Friday that China “wants to make a deal” on trade with the United States, but he also warned that any pact has to be “reciprocal.” “China wants to make a deal,” Trump said, adding that China had recently sent a list of trade items the nation is open to compromise on. The president said that tariffs the United States recently imposed on a range of Chinese products have put pressure on that country to agree to a trade pact. Trump said, “China has taken advantage of the
Dow jumps after Trump says China wants to make trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: dan mangan, fred imbert, kevin lamarque
Keywords: news, cnbc, companies, wants, trade, deal, trumps, china, united, states, dow, president, trump, white, jumps


Dow jumps after Trump says China wants to make trade deal

President Donald Trump said Friday that China “wants to make a deal” on trade with the United States, but he also warned that any pact has to be “reciprocal.”

Trump’s comments sent the Dow Jones Industrial Average to its high of the day, briefly trading more than 200 points higher in session highs.

But White House officials immediately after Trump’s remarks told CNBC that people should not read too much into those claims, because there is no sign of a deal coming soon.

After CNBC aired that qualification, the DJIA gave back nearly all of its gains seen on Trump’s statement.

The president spoke to reporters in the Oval Office during the signing of a cybersecurity bill at the White House.

“China wants to make a deal,” Trump said, adding that China had recently sent a list of trade items the nation is open to compromise on.

“Large list,” Trump noted.

The president said that tariffs the United States recently imposed on a range of Chinese products have put pressure on that country to agree to a trade pact.

“I think we’ll have a deal. We’ll find out very soon,” he said.

“We have to have reciprocal trade. We can’t have trade that’s meant for stupid people, and that’s the way they took advantage of our country.”

Trump said, “China has taken advantage of the United States for many, many years” by virtue of trading arrangements that had Americans buying billions of dollars worth of Chinese products every year and China buying relatively few American-made products.

“We have helped create China as we know it today,” Trump said.

— Additional reporting by CNBC’s Eamon Javers


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: dan mangan, fred imbert, kevin lamarque
Keywords: news, cnbc, companies, wants, trade, deal, trumps, china, united, states, dow, president, trump, white, jumps


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market

Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it. “The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. That will distinguish the winners and the losers” when the next bear market arrives. Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. WATCH: CNBC’s full interview


Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it. “The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. That will distinguish the winners and the losers” when the next bear market arrives. Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. WATCH: CNBC’s full interview
Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
Keywords: news, cnbc, companies, stocks, world, market, fund, sharp, hedge, rates, sp, dalio, ray, bear, mean, trouble, long, king


Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market

Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it.

“The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. “When there is a downturn, I don’t think there’s much to protect investors.”

Dalio did not call for a sharp downturn or the start of a bear market, but added: “Any investor should have a strategic asset allocation mix. In other words, what will be the neutral portfolio in an overall period of time and then figure out where there is alpha. That will distinguish the winners and the losers” when the next bear market arrives.

Stocks are in their longest bull market since World War II. Since the bottom of the financial crisis, the S&P 500 has more than tripled. The market’s jump in that time has been propelled in part by historically low interest rates from the Federal Reserve.

These low rates have created an incentive “to borrow money and buy stocks,” Dalio said. “That’s what caused the market to go up.”

However, the Fed is currently in the process of raising rates. The central bank has hiked rates three times this year and is forecast to hike once more in December.

Dalio’s comments come amid heightened volatility in the U.S. stock market. The S&P 500 fell into a correction in October before rebounding. The recent sharp moves come as investors worry about higher interest rates, global trade as well as a possible slowdown in the global economy.

“You have to create differentiation without much beta being built into the portfolio,” he added. “That will be the opportunity to distinguish those who were able to extract alpha and those who weren’t.”

Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. Through the end of 2017, the fund managed about $160 billion in assets.

WATCH: CNBC’s full interview with hedge fund king Ray Dalio


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
Keywords: news, cnbc, companies, stocks, world, market, fund, sharp, hedge, rates, sp, dalio, ray, bear, mean, trouble, long, king


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Paul Tudor Jones says we’re in a global debt bubble and headed for some ‘scary moments’

Billionaire investor Paul Tudor Jones said Thursday the world has loaded on too much debt which could bring trouble across asset classes. “From a 50,000 feet viewpoint, we’re probably in a global debt bubble,” Jones said at the Greenwich Economic Forum in Connecticut. His hedge fund, Tudor Investment, reportedly manages $7 billion in assets. “And they’re really scary because, one thing about this credit bubble [is] we’ve had liquidity absolutely dry up in so many markets.” “There probably will b


Billionaire investor Paul Tudor Jones said Thursday the world has loaded on too much debt which could bring trouble across asset classes. “From a 50,000 feet viewpoint, we’re probably in a global debt bubble,” Jones said at the Greenwich Economic Forum in Connecticut. His hedge fund, Tudor Investment, reportedly manages $7 billion in assets. “And they’re really scary because, one thing about this credit bubble [is] we’ve had liquidity absolutely dry up in so many markets.” “There probably will b
Paul Tudor Jones says we’re in a global debt bubble and headed for some ‘scary moments’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
Keywords: news, cnbc, companies, really, jones, moments, scary, tudor, debt, paul, credit, hedge, think, global, corporate, bubble, headed, probably


Paul Tudor Jones says we're in a global debt bubble and headed for some 'scary moments'

Billionaire investor Paul Tudor Jones said Thursday the world has loaded on too much debt which could bring trouble across asset classes.

“From a 50,000 feet viewpoint, we’re probably in a global debt bubble,” Jones said at the Greenwich Economic Forum in Connecticut. “Global debt to GDP is at an all-time high.”

“This is going to be a very challenging time for policymakers moving forward,” Jones said.

Jones is famous for making big macro calls. One of his biggest predictions came when he correctly called the 1987 crash. His hedge fund, Tudor Investment, reportedly manages $7 billion in assets.

The hedge fund manager believes it is the corporate bond market where we’ll see the first signs of trouble.

“I think this time it’s going to be corporate credit and I think the breakdowns are something that we have to pay attention to in the last day or two,” he said. “And they’re really scary because, one thing about this credit bubble [is] we’ve had liquidity absolutely dry up in so many markets.”

“There probably will be some really scary moments with corporate credit,” he added.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
Keywords: news, cnbc, companies, really, jones, moments, scary, tudor, debt, paul, credit, hedge, think, global, corporate, bubble, headed, probably


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post