A recent study by Northern Trust Asset Management sheds light on the impact of inflation on stock performance, particularly highlighting the potential benefits of investing in "quality" stocks. These stocks, characterized by high operating profitability but currently overlooked by Wall Street, have been identified as promising options during periods of rising inflation. … [Read more...] about Insights on Stock Performance in Inflationary Environments
Inflation
Japan’s Bull Market Journey
The current bull market that has seen the end of Japan's lost three decades should be named the "end of deflation" market, according to JPMorgan's top Japan strategist. Inflation Insights Inflation data out of Japan once again showed its strength, with core CPI sliding to 2% from 2.3% but exceeding estimates of 1.8%. Yield Movement The yield on the 2-year Japanese government … [Read more...] about Japan’s Bull Market Journey
Federal Reserve Interest Rate Cut Debate
During the late January policy meeting of the Federal Reserve, the minutes revealed a greater concern among officials about the risks of cutting interest rates too quickly rather than moving too slowly. Caution Toward Inflation The tone of the minutes reflected caution towards inflation, with most officials highlighting the risks of a hasty rate cut and emphasizing the need to … [Read more...] about Federal Reserve Interest Rate Cut Debate
Potential Fed Rate Hike Impact
It has been a gradual process, taking months for traders to comprehend the once-unthinkable notion of potentially no rate cuts in 2024. Now, the tables have turned as they entertain the possibility of another hike by the U.S. central bank. Shifting Perspectives The realization dawned following last week's consumer-price index for January surpassing expectations. Subsequently, … [Read more...] about Potential Fed Rate Hike Impact
Eurozone Negotiated Wage Cooling
Negotiated wages in the eurozone saw a slight cooling trend in the fourth quarter, offering a positive signal for European Central Bank policymakers as inflationary pressures start to alleviate. Decrease in Wage Growth In the period from October to December, negotiated wages rose by 4.5% compared to a 4.7% increase in the previous quarter, according to data unveiled by the … [Read more...] about Eurozone Negotiated Wage Cooling