The US stock market fell on the 20th. Although it was strong during the day, sales expanded to technology stocks in the afternoon, and the major stock indexes began to decline in the final stages. The S & P 500 stock index has fallen for three days in a row. It will be interesting to see if it will enter the adjustment phase following the Nasdaq Composite Index on the 19th, or if it will pick up from here. Below are five news items to keep in mind as you start your day.
“Super bubble”
Jeremy Grantham, co-founder of Grantham Mayo Van Otterloo (GMO), a US asset management company, said that US stocks are “Pointed out that it is in the state of “super bubble”. The bubble is sure to burst, and the market is expected to plummet. The S & P 500 Index is expected to fall to 2500, 48% below the highs set in early January.
Be wary of prolonged high inflation
At a meeting on December 15th and 16th last year, the European Central Bank (ECB) Policy Board agreed that the immediate inflation acceleration would be “mainly due to temporary factors, which will ease in 2022.” However, some members said “We cannot rule out a scenario of prolonged high inflation. ” The ECB has published the agenda of the meeting. Concerns over monetary easing and premature reductions in asset purchases were also expressed, according to the agenda.
Stop rate cuts
Central Bank of Turkey raises policy interest rate on the 20thDeferred and stopped the rate cut cycle. The Monetary Policy Committee has set the weekly repo interest rate at 14%. All 20 economists surveyed by Bloomberg expected to be deferred. Inflation has reached record levels in a series of rate cuts in line with President Erdogan’s intentions.
More attractive
Bond management giant Pacific Investment Management (PIMCO) may soon reassess its “underweight” stance on long-term government bonds. Long-term bonds have already fallen sharply due to the sale after the beginning of the year. Geraldine Sandstrom, a London-based portfolio manager who is primarily responsible for asset allocation strategies at PIMCO, said US Treasury yields have surged 30 basis points (bp, 1bp = 0.01%) since the beginning of the year.He said he was starting to look attractive.
The outflow does not stop
At Renaissance Technologies, a hedge fund operator, our clientsWithdrawal of funds continues. The outflow of funds has risen to about $ 14.6 billion (about 1.7 trillion yen) for all three of the company’s funds in the past 14 months. It was revealed in an investor document confirmed by Bloomberg. In the Renaissance, when the influence of the new coronavirus disease began to spread in 2020, the company’s algorithm did not work well, and by the end of the same year, three funds had a negative return of 19-31%. rice field. Although he has achieved positive results since then, the pace is too slow to stop the outflow of funds.
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