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Market Comment July 2018
07-03-2018, 10:02 AM
Post: #1
Market Comment July 2018
Trade tensions are expected to weigh on stocks, creating volatility and corrections, until the Fed pauses its rate hikes, Morgan Stanley chief equity strategist Michael Wilson said in a note. Wilson said he expects to see more "volatility with several 10 percent corrections in global equity markets at different points." Trade issues will be the catalyst in the near term and will be a negative influence because of concerns about their effect on earnings and the economy, he noted in his second-half outlook.

Stocks could get rocked, until the Fed stops raising rates

Stocks right now are hanging by a thread, boosted by a bonanza of corporate buying unrivaled in market history and held back by a burst in investor selling that also has set a new record. Both sides are motivated by fear, as corporations find little else to do with their $2.1 trillion in cash than buy back their own shares or make deals, while individual investors head to the sidelines amid fears that a global trade war could thwart the substantial momentum the U.S. economy has seen this year.

Corporate buybacks are the only thing keeping the stock market afloat

"Corporate cash is going to find a home, and it's either going to be in buybacks, dividends or M&A activity. What it's not going to be is in capex," said Art Hogan, chief market strategist at B. Riley FBR. "Individuals are looking at the turbulence we've seen this year that we had not seen last year. That creates its own sort of exit sign for investors who don't want to deal with that."

Corporate buybacks are the only thing keeping the stock market afloat

The list of negatives facing the $6.6 trillion stock market is growing. The economy is already showing signs of vulnerability to a U.S. trade war before new taxes are levied at the end of this week. Analysts and investors alike are struggling to keep up with the yuan’s descent, while there’s been little sign of heavy state intervention to stem the slump in either stocks or the currency. Concern is also growing over the health of the country’s massive property market.

China's Rebound Gone Within a Day With Even Biggest Stocks Crumbling - Bloomberg

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Market Comment July 2018 - admin - 07-03-2018 10:02 AM
RE: Market Comment July 2018 - admin - 07-06-2018, 10:11 PM
RE: Market Comment July 2018 - admin - 07-16-2018, 02:02 PM
RE: Market Comment July 2018 - admin - 07-20-2018, 01:04 PM
RE: Market Comment July 2018 - admin - 07-24-2018, 01:19 AM
RE: Market Comment July 2018 - admin - 07-25-2018, 01:48 AM
RE: Market Comment July 2018 - admin - 07-29-2018, 06:47 AM

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