Author - Craig Foley

Commodity stocks lead markets higher as US corporate bond yields approach 5%

20 Sep 2022 - Stocks closed higher on Monday in a volatile trading session ahead of the Federal Reserve's two-day policy meeting slated to kick off Tuesday. Rising yields now presents investors with an alternative, the gap between the S&P 500’s earnings yield and the returns from cash or high-grade, shorter-duration corporate bonds has narrowed significantly lately.

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FedEx sees global recession as commentary hits US markets

19 Sep 2022 - Stocks fell Friday as Wall Street wrapped up one of its worst weeks in months and traders reacted to an ugly earnings warning from FedEx about the global economy. The fall in FedEx shares was felt across the market as the company’s CEO announced he expects that the global economy is heading for a recession.

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US equities lower, but is the market cheap or expensive?

16 Sep 2022 - Valuations now are right back where they were in late 2019 however the environment was vastly different then. CPI inflation was about 2 per cent; now it’s about 8 per cent. Ten-year rates were 2 per cent, not today’s 3.5 per cent. All these contrasts should argue for a lower market multiple today than in 2019 - inflation, with its accompanying volatility and uncertainty, should compress multiples.

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