What's Eating Bill Gross (And What's Not)
As the Fed moves toward a gradual, continued rate hike process, it’s important for investors to keep an eye on the other central banks.
In the past five months, we’ve been watching the various economic indicators in the US reflect these improvements.
Gross believes that credit creation and the cost of credit should be monitored more properly.
China’s financial markets already crashed in August 2015. However, the total debt-to-GDP ratio is still too high, at 277% in 2016.
The rising credit level is a warning sign for the economy, and Gross believes this situation may trigger a crisis like the 2008 global debt crisis.
Gross is a big critic of the Fed’s prolonged lower interest rate, believing that the leveraged based financial system is a major problem for the economy.
David Tepper shared his view on Apple (AAPL) in a recent interview. He said that he trimmed his position because he is a little worried about the border adjustment tax with China.
Political uncertainty is playing a major role in the current investment scenario. The upcoming France election is a major event for investors.
Allergan stock has had a weaker performance in the last year with a fall of nearly 14.9%.
The expectation for a rate hike at the March 2017 meeting increased after Fed chair Janet Yellen’s recent speech at the Executives’ Club of Chicago.
After Donald Trump won the US presidential election in November 2016, market participants became optimistic about the US business (IWF) (SPY) (QQQ) environment.
David Tepper said that the improvements in various economic indicators are improving investors’ confidence in the economy.
The bond market has shown a huge rally in the last 35 years.
On Wednesday, March 8, 2017, David Tepper discussed his views on the equity market, the bond market, and top stock picks in an interview with CNBC.
Citigroup (C) is currently trading at $61.11. Its 52-week high is $62.53 and 52-week low is $38.31.
According to Goldman Sachs (GS), hedge funds have reduced their position in financial stocks (XLF).
Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.
The Financial Select Sector SPDR ETF (XLF), which tracks the performance of the financial sector, rose nearly 23.6% between November 8 and March 7.
The S&P 500 Index (SPY) is currently trading at price-to-earnings multiple of 18.6x.
The S&P 500 Index is trading 1.2% above its 20-day moving average and 6% above its 100-day moving average.