Bonds Behaving 'Almost Like A Meme Stock,' Says Equity Strategist: 'The Bond Market Is In Charge'
Portfolio Pulse from Benzinga Neuro
Equity strategist Richard Kneller from Stifel observes that the bond market is influencing the equities market, behaving erratically like meme stocks. This has led to a rally in the S&P 500 and Nasdaq due to a significant drop in yields over the past two months. The bond market's fluctuations are in response to anticipated Federal Reserve policies and new inflation data. Speculation about the Fed's rate cuts varies, with some expecting up to six cuts. Vance Howard of Howard Capital Management predicts long-term bonds could outperform the S&P 500 in 2024, having invested in the iShares 20+ Year Treasury Bond ETF. Bank of America projects the S&P 500 to reach 5,000 points by the end of 2024.
December 29, 2023 | 1:54 am
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POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) was mentioned as an investment by Vance Howard, who predicts it could outperform the S&P 500 in 2024.
The iShares 20+ Year Treasury Bond ETF is directly mentioned with a positive outlook for 2024, which could attract investor interest and potentially increase its price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
AMC Entertainment was referenced as an example of a meme stock that saw significant volatility in 2021. The bond market's current behavior is being likened to these past meme stock movements.
AMC is mentioned as a historical example of meme stock volatility and not due to any recent developments specific to the company. Thus, the short-term impact on its stock is expected to be neutral.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
GameStop was mentioned as an example of a meme stock that experienced significant volatility in 2021. The current bond market behavior is being compared to this past meme stock activity.
GameStop is mentioned in a historical context and not in relation to any current financial performance or company-specific news. Therefore, the impact on its stock price is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20