This year, high-beta stocks continue to demonstrate remarkable performance, firmly establishing their dominance within the US equities market, according to a set of ETF proxies as of the market close on February 27.
* UK and EU announce deal regarding the contentious Northern Ireland border
* China’s approval of new coal plants saw a significant increase in 2022, report says
* Will the clean-energy future arrive by drilling for hydrogen?
* US cyber chief emphasizes that companies need to improve security efforts
* Coinbase is set to suspend trading of the Binance USD stablecoin
* Some employers indicate they’re planning to replace workers with AI technology
* US core durable goods orders saw a notable rise in January, marking the largest increase in five months
* A decline in Texas factory activity deepens in February
* US pending home sales rebound sharply in January:
* The US warns that if China provides lethal aid to Russia, it will face ‘real costs’, US warns
* Moldova expresses concerns about becoming Russia’s next target for a Crimea-style annexation
* The US Energy Department states that COVID-19 likely originated from a lab leak
* Will cyberattacks on Albania, a NATO member, prompt a collective response from the alliance?
* Not even legendary investor Warren Buffett was spared from losses in 2022
* Although US economic data presents a mixed picture, economists still foresee a recession: NABE survey
* The policy-sensitive 2-year US Treasury yield reaches a 16-year high:
Jeanna Smialek
Review via The Economist
As COVID-19 hit, financial markets were in turmoil and an economic crisis loomed. The central bank shifted into emergency mode, flooding the financial system with significant, albeit not limitless, funds to avert disaster. The response was effective, leading to a swift recovery in growth and booming markets, yet also paving the way for resurgent inflation—a struggle the Fed continues to face. Jeanna Smialek’s “Limitless” offers a crucial perspective, illustrating the potential catastrophe that could have unfolded during the initial COVID shutdowns, which left millions unemployed overnight and threatened the financial system’s stability.
In a low-interest-rate environment, the argument for increasing equity allocations was straightforward. However, after a year of interest rate hikes by the Federal Reserve, this evaluation has become more complex.
* Ukraine’s president reiterates commitment to securing victory as the anniversary of Russia’s invasion approaches
* Amid neutrality debates, China calls for a ceasefire in the ongoing Russia-Ukraine conflict
* China’s online retail spending recovery post-lockdown has been modest, reports Alibaba
* US regulators issue warnings to banks about liquidity risks tied to crypto-related deposits
* There’s a rising demand for dividend-paying stocks as interest rates increase
* Fidelity reports that retirement account balances fell nearly 25% last year
* US jobless claims decline, signaling a tight labor market
* The US GDP growth for Q4 has been adjusted down to an annual rate of 2.7%
* US economic activity accelerates in January, posting the strongest growth in six months:
Thanks to a notable rise in interest rates, cash is no longer considered a poor investment, and the yields on riskier assets are also looking more promising.
* Putin announces that China President Xi will visit Russia
* Fed minutes reveal officials are committed to further rate hikes to combat inflation
* The US proposes its first offshore wind auction in the Gulf of Mexico.
* Several prominent Chinese apps remove access to AI chatbot ChatGPT
* Applications for US home purchases decline to the lowest level in 28 years
* US mortgage rates hit their highest mark since November:
Early projections for first-quarter GDP suggest that the economic rebound observed in the latter half of 2022 may face challenges, based on the median estimates compiled by CapitalSpectator.com.
In summary, the market landscape is evolving, driven by several factors—from high-beta stock performance to fluctuating economic indicators. Investors and analysts alike must remain vigilant and adaptive to these changes as the year unfolds.
