• BANK OF AMERICA: Global markets are screaming that this historic expansion is almost over - here's what investors should do to stay afloat

    2 monthes ago - By Business Insider

    Financial markets are providing clear clues about where we are in the cycle, according to Michael Hartnett, the chief investment strategist at Bank of America Merrill Lynch.
    For example, commodities are having a strong year and are the best performers so far while yields are rising and total returns are getting crushed.
    His trading advise, detailed below, is truncated in the acronyms Long ABCD, short EFH.
    Almost nine years since the Great Recession, the US economy is in its second-longest expansion and is generating curiosity about when and how it will sour again.
    Michael Hartnett, Bank of...
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  • An ultra-risky part of the market is the most out of whack since the financial crisis - here's what that means for investors

    An ultra-risky part of the market is the most out of whack since the financial crisis - here's what that means for investors

    2 monthes ago - By Business Insider

    Goldman Sachs says one part of the market is the most "mispriced" since before the financial crisis.
    The development is an extension of investors willing to take on more risk, even as market uncertainty swirls.
    Risk-taking behavior is alive and well, at least in one corner of the market.
    The credit-risk premium for CCC-rated bonds - the riskiest segment of the high-yield universe - has fallen to negative 53 basis points, the lowest since 2007, according to data compiled by Goldman Sachs .
    Translation: The debt issued by companies with the worst credit is out of whack to a degree not seen...
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