High yield investing

U.S. stocks continued to claw their way back last week, especially growth stocks . For the week, the Nasdaq posted a gain of 2.2% and the S&P 500 rose 0.4%. The Dow? Not so much, sliding just 0.1%. A blowout jobs report for July offered up another dose of good news for the economy and not-so-good news for the stock market, but equity investors hung in there. U.S. employers added 528,000 jobs to their payrolls last month , which was more than twice what was expected, and that added credence to the Federal Reserve 's stance that the U.S. economy is not in a recession given the continued strength of the labor market. So, the thinking goes, the Fed will continue to be aggressive in raising interest rates to cool down inflation, because it's not impacting companies' willingness to hire. That led to a steep selloff in U.S. Treasurys, with the yield on the 10-year Treasury note ending the week at 2.83%. Oil prices continue to tumble, hitting their lowest level since early … [Read more...] about Live from InvestFest with Downtown Josh Brown, BitBoy Crypto, and Lamar Wilson

- A + A NEW YORK/BENGALURU (Aug 9): The Nasdaq fell on Tuesday after a dismal forecast from Micron Technology pulled chip and technology stocks lower, as markets await US inflation data that could lead the Federal Reserve to further tighten its aggressive plans to curb inflation. High inflation numbers on Wednesday, following last week's blowout jobs report, would likely stop the Fed from easing interest rates hikes and halt a nascent recovery in stocks. Traders see a 68.5% chance of the Fed raising rates by 75 basis points in September, in what would be its third big hike in a row. Adding to concerns of a tight labour market and runaway inflation, data on Tuesday showed an acceleration of unit labour costs in the second quarter, which suggested strong wage pressures will help keep inflation elevated. Unit labour costs — the price of labour per single unit of output — rose at a 10.8% rate, following a 12.7% rate of growth in the first quarter, the Labor … [Read more...] about Nasdaq slides 1% as chipmaker Micron’s warning renews tech rout

- A + A NEW YORK (Aug 9): The Nasdaq closed down on Tuesday (Aug 9), after a dismal forecast from Micron Technology pulled chipmakers and tech stocks lower, as investors awaited US inflation data that could lead the US Federal Reserve (Fed) to further tighten its efforts to curb inflation. High inflation numbers on Wednesday, following last week's blowout jobs report, would likely stop the Fed from easing interest rates hikes anytime soon, and halt the market's rally off mid-June lows. Traders see a 68.5% chance of the Fed raising rates by 75 basis points in September, in what would be its third big hike in a row. Adding to concerns of a tight labour market and runaway inflation, data on Tuesday showed an acceleration of unit labour costs in the second quarter, which suggested that strong wage pressures will help keep inflation elevated. Unit labour costs — the price of labour per single unit of output — rose at a 10.8% rate, following a 12.7% rate of growth in … [Read more...] about Nasdaq closes lower as chipmaker Micron’s warning renews tech rout

Share to Twitter Share to Linkedin Robert Amoruso is the Founder and CEO of Gideon Strategic Partners , a boutique investment advisory firm based in Santa Monica. One of the fastest-growing asset classes over the past five years has been private credit, which has catapulted to an estimated $1.6 trillion market as interest rates sank and bond yields lost their luster. Spurred by the 2008 exit of merchant banking, in addition to issues with syndicated loan platforms, private credit funds have aggressively captured a share from the traditional bank channels. Conventional wisdom would dictate that if private credit saw a boost in a declining interest rate environment, the asset class should suffer as the Federal Reserve Board continues to hike rates to stave off inflation. However, private credit’s concentration in floating rate credits put these strategies in lockstep with rising interest rates. Opportunities For UHNW Investors There … [Read more...] about How Rising Interest Rates Affect Private Credit