Rising interest rates, China's faltering recovery, and declining profit margins are risks, but the market can power through them.
Now that stocks seem stuck in a holding pattern after surging for much of the year, the chorus of voices saying they should fall is growing steadily louder. Investors are taking good news as bad news: Stock indexes fell in response to strong jobs data and awesome earnings from Nvidia.The S&P 500, down 0.3% in Thursday afternoon trading to 4450, is flat over the past two months.
Skeptics on the market cite the fact that inflation-adjusted interest rates are at 20-year highs as a reason why stock valuations are too high. But Subramanian says that they have only just come off a 5,000-year low, with borrowing until recently cheaper than in any society since ancient Mesopotamia. Even over the half-century for which data are more readily available, today’s rates remain below average.
Meanwhile, efforts by U.S. companies to bring production closer to home will keep capital spending elevated, countering another bearish talking point. “Trade and geopolitical tensions, supply chain disruption, fiscal stimulus, and decarbonization goals drive the case for reshoring,” Subramanian wrote. “Companies have been talking about reshoring, and hard data now backs it up.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Huge Amount of XRP on the Move: Reasons to Worry or Business as Usual?A lot of XRP seems to be on the move across some of the leading exchanges. Let's dive deeper.
Read more »
Tech stocks lead declines as investors worry about interest rate direction By Investing.comTech stocks lead declines as investors worry about interest rate direction
Read more »
Japanese stocks climb for eighth day as Hong Kong stocks hold steadyAsia-Pacific stocks increased Wednesday, Sept. 6, with the Japanese market showing an eighth day of increases and shares in Hong Kong declining for the...
Read more »
4 reasons why you shouldn't wait for mortgage rates to dropEven with elevated mortgage rates, it may not make sense to wait for them to fall. Here's why.
Read more »
Extra Extra: Don't worry too much about 'juice jacking'Because the break from the flood of tourists was pretty nice, here are your afternoon links: celebrity chefs are no longer a selling point, a deadly spicy tortilla chip, juice jacking worry, and more from around the city and internet.
Read more »
Why Staten Island seceding from NYC makes sense — for multiple reasonsStaten Islanders are just looking to have the same sort of control over their governments their small-town and suburban counterparts across the state enjoy.
Read more »