{"id":2105639,"date":"2023-11-22T10:45:02","date_gmt":"2023-11-22T15:45:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/big-investors-say-us-markets-rally-could-prove-short-lived\/"},"modified":"2023-11-22T10:49:40","modified_gmt":"2023-11-22T15:49:40","slug":"big-investors-say-us-markets-rally-could-prove-short-lived","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/big-investors-say-us-markets-rally-could-prove-short-lived\/","title":{"rendered":"Big investors say US markets rally could prove short-lived"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbig-investors-say-us-markets-rally-could-prove-short-lived%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2105639&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>12:38\u200b PM \u200cUTC \u2013\u2064 November 22, 2023<\/p>\n<p>NEW YORK (Reuters) \u200d\u2013 Big money managers believe that the \u2062recent rally in U.S. stocks and bonds is just a year-end \u200crebound and not a turning point. They \u200cforesee \u2063fiscal and monetary\u200d policies,\u2062 next year&#8217;s presidential election, \u200dand recession\u200c fears starting to weigh on the markets. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Since late October, the S&#038;P 500 (.SPX) \u2063has experienced a \u200crally of approximately 10%, while the Nasdaq (.IXIC)\u2062 has surged 13%. This \u2063surge is \u2062attributed to investors betting that the Federal Reserve&#8217;s \u200btightening \u2062cycle is\u2063 over,\u2062 following signs of cooling inflation, job\u200c growth, and\u2062 a better-than-expected third-quarter earnings\u200d season.<\/p>\n<p>Ten-year Treasury yields reached a\u2063 16-year \u200chigh\u200c of\u2063 5.021% in late October but have since fallen back to 4.414%.\u200b The decline in yields has fueled a technology-driven \u2063equities rally.<\/p>\n<p>However, some big investors and\u2062 advisers believe that the reasons for celebration\u2063 are short-lived. They anticipate growing concerns over the \u2064economy to\u200d start impacting asset prices early next year.<\/p>\n<p>&#8220;We&#8217;ve \u2064started seeing some signs that things are a little weaker than what people may believe,&#8221; said Ryan Israel, chief investment officer \u200cof\u200d Bill Ackman&#8217;s\u2063 Pershing\u2062 Square Capital Management, in a recent client update. He emphasized that\u200d the main focus now is the direction of the economy.<\/p>\n<p>According to Mohamed El-Erian, an adviser\u200b to financial \u2063services firm Allianz SE (ALVG.DE), the markets may have \u200b&#8221;gone too far in extrapolating&#8221;\u2064 rate\u200d cuts in early\u2062 2024 based on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/big-investors-say-us-markets-rally-could-prove-short-lived\/\" title=\"Big investors say US markets rally could prove short-lived\">recent data suggesting\u200c falling consumer \u2062inflation<\/a> and\u2064 a weakening U.S. labor market.<\/p>\n<p>While inflation has\u2062 become less\u200b prominent after U.S. consumer prices remained unchanged in October, investors are\u200b concerned about the impact of the Federal \u200cReserve&#8217;s 525 basis points in total interest\u200d rate hikes \u200csince March 2022, coupled with its efforts\u2062 to \u2062reduce its balance sheet through quantitative tightening.<\/p>\n<p>Overall, economists expect global economic growth \u2062to slow in 2024 due to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuilder-confidence-falls-for-record-tenth-straight-month\/\" title=\"Homebuilder Confidence Falls for Record Tenth Straight Month\">elevated interest rates<\/a>,\u200d higher energy prices,\u200c and cooler\u2062 growth in the U.S. and China. However, most\u2062 economists believe that a recession\u2064 can be avoided.<\/p>\n<p>&#8220;I don&#8217;t\u200b think that the market is going to dodge a \u2064very aggressive Fed tightening cycle and then continued quantitative tightening environment\u2062 without \u200ca little bit \u200dof damage coming sometime next \u200dyear,&#8221; \u200csaid Peter van\u200d Dooijeweert,\u200d head of defensive and tactical alpha \u200dat Man Group&#8217;s \u200cSolutions \u200bunit.<\/p>\n<p>The upcoming\u200c U.S. presidential race in 2024 is also a concern, as it could introduce more market instability. &#8220;As we get into 2024, with a general election that&#8217;s going to be extremely contested,\u2063 I\u2062 think we&#8217;re going to see more \u2063risks there,&#8221; said Max Gokhman, head of MosaiQ investment strategy at Franklin Templeton.<\/p>\n<h4 class=\"wp-block-heading\">MAGNIFICENT\u2064 SEVEN<\/h4>\n<p>Investors are particularly \u200buncertain about the performance \u200cof the so-called Magnificent Seven group of\u2062 very\u2062 large companies, which\u2062 have \u2064been driving stock\u200b indexes this year.<\/p>\n<p>Bill Gross, co-founder of bond giant Pimco, \u2062stated that the drop in yields has primarily \u2062benefited technology stocks, which are also benefiting \u200bfrom investor enthusiasm for artificial intelligence. However, he believes there is \u200clittle room for the 10-year Treasury yield to move lower at 4.45%.<\/p>\n<p>For tech stocks to \u2062continue\u200c performing well, they \u200bwill need to demonstrate how artificial intelligence can\u2062 contribute to improved results. Last month, Microsoft&#8217;s quarterly\u2063 results exceeded Wall\u200c Street sales estimates, \u2064with\u2064 its cloud computing and PC businesses growing as customers anticipated using its AI offerings.<\/p>\n<p>&#8220;The market might be too optimistic\u200c about how much of the \u2064AI boom is\u200b really going to contribute \u2062to the bottom line of \u2063earnings of the\u200b Magnificent\u200d Seven,&#8221; said van Dooijeweert.<\/p>\n<p>A Reuters poll showed \u2064that strategists estimate \u2064the S&#038;P 500 will\u200b only end next\u200b year \u2062about 3% higher than its current level, as they fear an economic slowdown or \u200crecession.<\/p>\n<p>&#8220;I think it would be important to hold your convictions \u200cquite loosely as \u200cyou go past\u2062 New Year&#8217;s Eve,&#8221; advised Gokhman of Franklin Templeton.<\/p>\n<p><sub>Reporting\u200b by \u200bCarolina Mandl, David Randall and Svea Herbst-Bayliss;\u200c Editing by Megan Davies and Leslie Adler<\/sub><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\t\u200b \t\tShare\u200b this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The Chief of \u200cCrypto Giant Binance\u200d pleads guilty \u2064to money laundering and steps \u200bdown, Israel may agree to a hostage deal and \u2064Susan Sarandon is dumped by her agency.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>It\u2019s that time of year again to be\u200c thankful and pardon turkeys. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Defense Chief Lloyd Austin \u2064made an \u200bunannounced trip to Ukraine this\u2062 week, announcing 100 million dollars in more\u200d aid to the\u2062 region. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The \u200cUS\u2064 government \u200dhas declared war on our 1st Amendment, and One\u200d America News is Washington\u2019s number one target. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Sam Altman\u2019s return as CEO\u2063 of OpenAI caps a frenzied discussion about the future of the startup at\u200b the center of an artificial intelligence boom.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Social media company X CEO Linda Yaccarino told \u200cemployees that &#8220;data will tell\u2064 the real story&#8221; about its efforts to battle antisemitism.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Microsoft emerged on Monday\u2062 as the big winner of\u2062 the upheaval \u2063at OpenAI, hiring ousted CEO Sam Altman and \u2063other\u2064 key staff of \u200bthe startup.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>OpenAI named\u2063 ex-Twitch boss Emmett Shear as\u200b interim CEO, while outgoing \u200dchief Sam Altman\u2062 is set to join backer Microsoft\u200c in a surprise\u200d turn of events for the startup.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What factors \u200care causing <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gil-gutknecht-the-great-green-conspiracy\/\" title=\"Gil Gutknecht: The Great Green Conspiracy\">big money managers<\/a> to be skeptical about the sustainability of the recent rally in U.S. stocks and bonds?<\/h2>\n<p><span>  Klin Templeton. He\u200d suggests being cautious and flexible in investment decisions as the new year approaches.<\/p>\n<h4 class=\"wp-block-heading\">CONCLUSION<\/h4>\n<p>While the recent rally in U.S. stocks and bonds has\u2064 brought \u2063optimism to the market, many big money managers are skeptical about its sustainability. They believe that factors such as fiscal and monetary policies, the upcoming presidential election, and recession\u200d fears \u2063will start to weigh on the markets next year. The decline in yields\u2062 and the surge in technology stocks are seen\u2062 as merely \u2064temporary, and concerns \u200cabout the economy and the \u2063impact of interest rate hikes\u200c remain. Overall, economists expect global economic growth to\u2063 slow in 2024, \u2064but most believe that a recession can be\u2062 avoided. As the new year approaches, it is\u200c advised to maintain caution and flexibility in\u2062 investment decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>12:38 PM UTC \u2013 November 22, 2023 NEW YORK (Reuters) \u2013 The recent rally that has lifted U.S. stocks and bonds is more of a year-end rebound than a turning point, according to big money managers, who see fiscal and monetary policies, next year\u2019s presidential election and recession fears as likely to start weighing on<\/p>\n","protected":false},"author":1911,"featured_media":2105640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2105639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2105639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2105639"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2105639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2105640"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2105639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2105639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2105639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}