U.S. stocks finished mixed Thursday, with the Standard & Poor's 500-stock Index ending at its all-time high, after a last-minute deal was struck to reopen the U. S. government and raise the debt ceiling. "The market in general is doing good. The big thing is tapering. There is no way that the Fed would taper (soon)," Alan Valdes, director of floor trading at DME Securities, told Xinhua Thursday. The stock market has been greatly boosted since it hit a 12- year low in March 2009 by the U.S. Federal Reserve's quantitative easing to boost the economic growth and create jobs. Wall Street is expected to continue to move higher if the Fed keeps pouring money into the market. The U.S. government ended its 16-day partial shutdown after U.S. President Barack Obama early Thursday signed the 11th-hour deal, which passed both the Republicans-led House of Representatives and Democrats-dominated Senate Wednesday night. The bill funds the government through Jan. 15 and raises the debt ceiling … [Read more...] about U.S. stocks end mixed, with S&P 500 closing at record high following fiscal deal
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Several big-name hedge fund investors soured on U.S. stocks in the second quarter and moved to gold and other bearish bets, failing to anticipate the stock market rally in the current quarter. Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, speaks at the Sohn Investment Conference in New York, May 5, 2014. Noting the recent run-up in the benchmark Standard & Poor's 500 index to fresh record highs while economic growth remains weak and corporate earnings are stagnant - George Soros, Jeffrey Gundlach, Carl Icahn and David Tepper were among billionaire hedge fund investors and money managers who slashed their long equity positions in the second quarter, according to regulatory filings. All three major U.S. stock indexes ended at all-time highs on Monday, extending their record-setting climb of the past few weeks. The … [Read more...] about lionaire investors turn bearish as U.S. stocks hit record highs
In his most recent Berkshire Hathaway shareholder letter, the ever-folksy Warren Buffett sounds more like a personal finance guru than a financial mastermind, focusing on buy-and-hold investing and advocating indexing strategies. Buffett's net worth is about $60 billion, according to Forbes magazine, so he is obviously doing something right. But how sound is his advice for the rest of us? (here) I spoke to some financial advisers and pundits, some of whom are the kind of folks Buffett thinks you should ignore, to get their take. STAY PASSIVE, KEEP COSTS LOW What immediately caught my eye is Buffett's instruction that his wife back up the truck and invest in the Standard & Poor's 500 stock-index upon his death. That's not a huge surprise, though. Buffett is a longtime fan of Jack Bogle, founder of the Vanguard Group, who champions passive, low-cost investing. But this is the first time Buffett is "putting his money where his mouth is in his own estate," Bogle said in a email … [Read more...] about Will Warren Buffett’s investment advice work for you?
The shock resignation of U.S. House Speaker John Boehner on Friday reduces the chances of a government shutdown next week, potentially removing one source of investor anxiety as Wall Street gears up for a week heavy with economic data and commentary by Federal Reserve policymakers. Boehner said Friday he will step down from the speakership and leave the House at the end of October. This was seen as a sign that Boehner would advance a bill to fund the government without any complicating factors that would result in a White House veto. "This significantly reduces the probability of a government shutdown next week," Goldman Sachs economists said in a note to clients on Friday. While Boehner's resignation makes a government shutdown due to a lack of funding on Oct. 1 less likely, other fiscal challenges remain. A long-term federal budget deal and a debt ceiling increase must still be passed by Congress. Disputes over these issues between the two parties and among Republicans will not be … [Read more...] about Boehner resignation cuts U.S. government shutdown risk
Investors were hoping 2016 would be a fresh start after the U.S. stock market sputtered to wrap up 2015. Instead, what they got was rotten. Major averages kicked off the year with their worst week in more than four years as investors fled the market, and fear is on the rise that a full-blown bear market may be lurking. While that may be overstated, markets do face an unsightly assortment of obstacles. Here are some of the biggest worries on investors' minds, and some factors that may mitigate the downside risk: CHINA: The volatility surrounding the world's second-largest economy is a primary concern of investors. Attempts by officials there to tamp the selling in equities and the steady devaluation of the yuan have fed worries about capital flight. Moreover, a weakening in the currency could hurt demand for imports, particularly those sold in dollars like oil. U.S. exposure to China in terms of gross domestic product is minimal - only about 0.7 percent of overall GDP, according to … [Read more...] about Five things the U.S. stock market is worried about after last week’s rout