Investors are overlooking market risks, CIO warns: US debt and oil prices are potential hazards.
The chief investment officer warned that the market faces two major risks, but while paying attention to these challenges, he is also bullish on some stocks, calling them "alternatives to bonds".
2-year Treasury Yield Slides as Investors Assess Interest Rate Outlook
Daily futures tracking | Chip stocks have rebounded over the past few days, Nvidia and Broadcom single trading are active; gold and silver spot has soared, and related ETF bullish options have earned nearly 20 times overnight
Are bears sniping at Intel? The bearish ratio rose to 72%, and put trading volume increased dramatically; Broadcom rose by 3.97% to lead the rise in star technology stocks, and earned 6 times the profit from a single call due in October.
Why are U.S. bonds so strong? There's too much money waiting to "buy the dip".
Due to the large amount of cash held off-exchange, people are worried that if they don't deposit the money into a fixed-rate account now, they will lose out on interest income in the future. Every time the interest rate rises, people flock to it.
The momentum of the "50 basis points theory" for the Fed's interest rate cuts is rising again, and the price of US bonds is rising accordingly.
Due to investors' increased assessment of the possibility of a 50 basis point rate cut by the Federal Reserve next week, the price of US Treasury bonds has risen, driven by short-term notes.
Steepening of U.S. Treasury Curve Could Stall in Coming Days -- Market Talk