Risks Out There 06 (May 20 - Dec 24)

[behappyalways]

Jump into stock market expecting rise 'a fool's errand': Billionaire investor David Rubenstein
https://finance.yahoo.com/news/jump-int ... 36959.html

[behappyalways]

Bonds wave red flag on US economy while stocks show green
https://www.theedgesingapore.com/capita ... show-green

[winston]

Risk Assets Seen Entering ‘Danger Zone’ in Next Few Months

by Joanna Ossinger

As a run of positive catalysts comes to an end -- including improved clarity from earnings season, a new European Union recovery fund and the possibility of further U.S. fiscal stimulus -- the favorable environment for risk assets is expected to change, Morgan Stanley strategists led by Andrew Sheets wrote in a note Friday.

The team suggested investors reduce exposure for the August-September “danger zone” when seasonality worsens for equities and credit, the U.S. presidential election comes into focus and an “exceptional” period of positive economic surprises likely moderates.

They recommended investors consider raising cash balances and buying credit-default-swap index protection in the bond market. They also suggested looking at European assets which are more likely to outperform.

Source: Bloomberg

https://finance.yahoo.com/news/risk-ass ... 27622.html

[behappyalways]

Central banks’ coronavirus bailouts are distorting the market, but do they even realise it?
https://www.scmp.com/comment/opinion/ar ... et-do-they

[behappyalways]

Why the US dollar slide may be a sign of real danger this time
https://www.scmp.com/comment/opinion/ar ... anger-time

[behappyalways]

Market timing when ‘clocks have no hands’ — Warren Buffett’s warning is as relevant now as it was in 2000
https://www.marketwatch.com/story/marke ... yptr=yahoo


Apple's Great at $2 Trillion. Its Stock May Not Be
https://www.bloomberg.com/opinion/artic ... nd=opinion

[behappyalways]

A 'double-dip' recession looms large — here's what this economist predicts
https://finance.yahoo.com/news/a-double ... 19912.html



Concern grows over potential for double-dip recession
https://www.youtube.com/watch?v=2LBWU-6tYKE

[behappyalways]

U.S. tech stocks are now worth more than the entire European stock market
https://www.cnbc.com/2020/08/28/us-tech ... arket.html

[winston]

Here’s what could trigger more stock market pullbacks this year, says Schwab trading pro

by Barbara Kollmeyer

A 2%-3% decline sometime in the next couple of weeks wouldn’t be at all surprising to me.

When those smallish pullbacks come along, though, he advises against panic (he urged no panic in early March too), saying “they will be and should be used as buying opportunities.”

That is because there is nowhere else for investors to put their money as any Federal Reserve interest rate increase is years out.

1. Technical. One potential correction trigger is technical, as he says 2020 has been closely tracking the action in 2009.

2. Earnings. A “substantial pullback in earnings could also trigger a pullback,” he said, noting that second-quarter S&P 500 earnings per share came in far better than expected.

3. Covid19. Frederick is watching the coronavirus pandemic as a potential trigger, with schools opening across the country and the potential for a dramatic uptick in the case count spooking markets.

4. China Trade War. Trade issues with China shouldn’t be dismissed.

5. Unemployment Stimulus. Another stick of dynamite for stocks is continued wrangling over enhanced unemployment benefits in the U.S.

Source: MarketWatch

https://www.marketwatch.com/story/heres ... yptr=yahoo

[winston]

5 Reasons A Stock Correction May Be Imminent

by Eric Parnell

Summary

The S&P 500 Index looks strong, but is becoming increasingly fragile.

A correction may be imminent. How far can we expect stocks to fall?

Don't fear the correction. Instead, seek to capitalize.

1. Increasingly narrow breadth
2. Growing fear
3. Historically negative real yields
4. Overstretched and overbought
5. September

Source: Seeking Alpha

https://seekingalpha.com/article/437210 ... nt=link-10