Why some worry about Social Security amid debt ceiling negotiations

The midterm elections made two key federal programs seniors rely on — Social Security and Medicare — a topic of national conversation. Now, as the final vote tally comes in — with a Democratic majority in the Senate and a Republican majority in the House of Representatives — advocates for the programs are also calling … Read more

Year-end rally ignited as rates fell and loosened their grip on stocks

Treasury yields fell sharply and eased their grip on the stock market Thursday, helping fuel the monster rally that broke out after a report of cooler-than-expected inflation data. The rise in yields this year has choked off stock market gains and weighed on technology and growth stocks in particular. They are high-priced stocks that do … Read more

The markets are returning to the ‘old normal’ of higher bond yields — what it means for investors

Bonds this year have been the main source of discomfort for their owners and the key inflictor of the pain the Federal Reserve believes the economy and markets must bear to defeat inflation. The unsettling impact of the relentless ramp in Treasury yields from historic lows to 14-year highs has been as clear and explosive … Read more

What to invest in amid rising Treasury yields and rate hikes: Analysts

Yields are rising again, and interest rate hikes look set to continue. Analysts say that means it’s a good time for investors to put their cash in bonds or Treasurys — especially the ones with the shortest duration. BlackRock said in a note on Tuesday that it believes the US Federal Reserve will continue to … Read more

BlackRock on recession playbook of sovereign bonds, US Treasurys

One important part of the recession playbook is “obsolete” — and that’s seeking shelter in bonds, according to BlackRock, the world’s largest asset manager. “Recession fears are roiling markets. Investors traditionally take cover in sovereign bonds, but we see this recession playbook as obsolete,” strategists from BlackRock Investment Institute, led by Jean Boivin, wrote in … Read more

America’s biggest banks now pay attractive dividend yields, as long as they’re safe

Given the downdraft in bank stock prices this year, some of the biggest financial companies in the US are all of a sudden offering sky high dividend yields. Those lofty payouts are attractive in absolute terms, and even when compared with prevailing Treasury yields. Keep in mind that the 2-year note is paying north of … Read more

Think about stocks whose profits grow even as rates rise, Bank of America says

In the same way that consumers with savings can benefit from rising interest rates, some companies also stand to gain from the Federal Reserve’s push to stamp out inflation, which has resulted in higher Treasury bill yields. These companies are ones that temporarily hold a lot of cash on behalf of customers, receiving premium income … Read more

Best performing global stocks last week include a gold miner

Global stocks struggled last week as Wall Street wrapped up its worst month since March 2020. The MSCI World index declined around 2.4% for all of last week, as Friday capped off a negative month and quarter for all the major averages on Wall Street. Treasury yields also fell back slightly after a volatile week. … Read more

Fed rate hikes have made some corporate bonds very attractive. How to profit from it

As stocks sink and interest rates rise, investors are getting more excited about corporate bonds than they’ve been in a generation. One side effect of the Federal Reserve’s tightening policy is that it has made interest rates go up everywhere — including in the corporate bond market. But as pros point out, investors need to … Read more

From the Fed to Europe’s currency crisis, here’s what’s behind this selloff in financial markets

Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that its battle with inflation could result in much higher interest rates and a recession. The sell-off Friday was global, in a week where the Fed boosted rates by another three-quarters of a point and other central … Read more