Tag: Stocks and Bonds

Stocks gain in volatile trading as markets react to the Fed’s interest rate plans.

The Federal Reserve on Wednesday said it would “soon” be appropriate to raise interest rates, as inflation runs above policymakers’ preferred target and the job market strengthens. Although central bankers left rates unchanged at near-zero — where they have been set since March 2020 — the revised statement after their two-day policy meeting laid the […]

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Wall Street’s Swings Continue as the Federal Reserve Meets

That’s not to say investors and the economy aren’t facing some risks. Disruptions are slowing output at factories, companies are struggling to find workers, and rising prices will eat into consumer demand. On Tuesday, the International Monetary Fund reduced its estimate for global growth to 4.4 percent from the 4.9 percent it projected just three […]

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How to Survive When Stocks Behave Badly

The bull market may have swelled the proportion of stocks in your portfolio inordinately. If that’s the case, rebalance. Sell some high value stocks and put the money into bonds. Later on, if the stock market falls, you can sell some bonds to buy stocks. Better yet, let a balanced fund (or a target-date fund), […]

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Fed’s Policy Pivot May Prove Late and Abrupt, Critics Fret

That caused the Fed to change course late last year — and to do so fairly abruptly. “Inflation really popped up in the late spring last year, and we had a view — it was very, very widely held in the forecasting community — that this would be temporary,” Mr. Powell said in December. But […]

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S&P 500 Rallies After Touching Correction Territory, Erasing Day’s Losses

So a slide in prices that removes some of that excess was long overdue, many market watchers said. “We haven’t had a correction in a long time,” said Lindsey Bell, the chief money and markets strategist at Ally Invest. “While this sell-off in the past couple of weeks feels uncomfortable, the good news is that, […]

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Nelson Peltz Takes Aim at Unilever

LONDON — Only days ago, Unilever suffered a big defeat when it was forced to drop its $68 billion bid for GlaxoSmithKline’s consumer health business. Now it must deal with one of Wall Street’s most prominent activist investors, Nelson Peltz, who has amassed a stake in the consumer products giant via his investment firm, Trian […]

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Kohl’s Receives $9 Billion Offer Backed by Activist Investor

The department store Kohl’s has received a roughly $9 billion offer to go private in a deal with an investment consortium backed by the activist hedge fund Starboard Value, according to two people familiar with the matter. The offer highlights the resurgent interest that activist investors are showing in department stores, as brick-and-mortar retailers have […]

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Readers Have Questions About Stocks. An Economist Replies.

Lots of readers responded to my Jan. 5 newsletter discussing a new book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life,” by the Boston University economist Laurence Kotlikoff. I’ve already responded to many of you by email but nothing beats hearing from Kotlikoff himself. I presented him with some […]

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Stock Markets Off to Worst Start Since 2016 as Fed Fights Inflation

After falling for a fourth day in a row on Friday, the stock market suffered its worst week in nearly two years, and so far in January the S&P 500 is off to its worst start since 2016. Technology stocks have been hit especially hard, with the Nasdaq Composite Index dropping more than 10 percent […]

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