Chasing Yields

As the new year unfolds, investors face a dizzying array of choices. The AI boom continues to dominate headlines. Cryptocurrencies promise revolutionary returns.

Job Openings and Labor Turnover Survey (JOLTS) numbers were released this week from the Bureau of Labor Statistics indicating that there were 7.15 million jobs opened at the end of November.

Treasuries edged lower today after the Bureau of Labor Statistics announced October and November job reports.

While investors wait for the results of the FOMC meeting and an anticipated cut, the bond market is keeping an eye on the bigger picture.

Traders are very optimistic that the Federal Reserve Committee will cut interest rates at its upcoming policy meeting on December 10th.

Investors have notably increased their investments in artificial intelligence stocks this year, capitalizing on the surge in AI-related sectors and the market’s recent highs, resulting in record levels of investment.

Last week, regional bank stocks took a hit as two US banks reported trouble with bad loans—Zions Bancorp in Utah and Western Alliance in AZ.

After a relatively drama-free stock market for the last several months, the new standoff between the US and China has escalated investors’ fears to a heightened level.

With the price of an ounce of gold reaching record-breaking new highs, currently $ 4,070 as I write, it remains the primary safe-haven asset, along with the dollar.

Treasury yields are mixed as bond buyers assessed future growth and inflation issues following yesterday’s quarter-point interest rate cut by the Federal Reserve and their hints of two additional cuts by year’s end.

This week, we’ve seen a significant rise in jobless claims, reaching the highest level in 4 years, as reported by the Labor Department. This, coupled with the August consumer price index surging by 2.9%, a faster pace than the two previous months, has had a profound effect on the market.