Important information: The value of investments and the income from them can go down as well as up, so you may get back less than the investment. One of the best tips for investors is not to be too bearish when the market is falling. Prices always go first, often long before the outlook for the real economy improves. This week, investors are starting to wonder if we are close to that turning point.
One of the main functions of the stock market is to anticipate what will happen to the company’s finances. Markets fall when they expect weak business results. And that’s exactly what they’ve done so far this year, with the S&P 500 index down 15 minutes from its New Year’s peak. Therefore, the financial period in the third quarter, which starts this week, will be the key for the market to go from here. If the results are better than expected 카지노사이트, investors may think that the market has already entered a big bad news. If they are worse, the market may fall even further.
Expectations are low
The banks, which are usually startups, should have set aside billions to pay off bad debt. More generally, incomes are low now. The wild card this season will be the strength of the dollar, now at a multi-year high. Since many US companies earn their profits overseas, the value of their profits is lower when converted to the stronger US currency.
Prices and rates are still on the radar
Income and prices can guide the market in the medium and long term, but in the short term, the focus is on the Fed. The main driver for the market this year is rising interest rate expectations. Again, a lot of bad news has now come in, with rates now hovering around 5%. Marketing Owner: Getting Started with Agile Marketing Navigator
Therefore, this week’s publication of the minutes of the September Fed meeting, as well as data on US inflation, will be indicative. Any idea that the Fed might be willing to take its foot off the financial gas will be investor-friendly. Last week’s market move was about rates. Friday’s stronger-than-expected jobs report was enough to restore market optimism. The Fed remains the key. Still at home…
The United States may be the main driver of the stock market, but the United Kingdom is also on investors’ radar as the new government finds its feet and tries to convince the market that its race for growth will not work. The pound and bulls had a major market rejection of Chancellor Kwarteng’s tax cuts. He was forced this week to present his full budget from November 23 to the end of October.
Perhaps most important in the near term is whether the Bank of England will temporarily end its bond-buying measures on Friday for market volatility that followed a budget deficit more than two weeks ago. Before we get to that, another month of falling GDP should focus on the UK’s economic woes.
Important Information: Investors should be aware that the ideas presented may not be current and may already be implemented. Changes in exchange rates will affect foreign investment. There is a risk that bond issuers may not be able to repay the money they borrow or pay the interest. Macroasia to Restore Mining Operations
When interest rates rise, bonds can lose value. Rising interest rates can cause the value of your investment to fall. This information is not personal investment advice. If you are unsure whether an investment is appropriate, you should consult one of Fidelity’s advisors or a qualified financial advisor of your choice.