Markets

Mohamed El-Erian warns that stocks could tank if the Fed’s liquidity ‘engine’ stops running, cites disconnect between prices and fundamentals

Economist Mohamed El-Erian says markets may falter as the Fed’s liquidity “engine” becomes less and less powerful, and as investors begin to challenge elevated valuations. “If that engine disappears, we have a long way between where asset prices are right now and where fundamentals will validate them,” he told Bloomberg […]
Mohamed El-Erian warns that stocks could tank if the Fed’s liquidity ‘engine’ stops running, cites disconnect between prices and fundamentals
Markets

Morgan Stanley says earnings guidance is more unpredictable than ever, but focus on ‘high-quality factors’ can reveal long-term winners

Morgan Stanley said investors should focus on “high-quality factors” as an effective trading strategy to overcome the uncertainty from companies dropping earnings guidance because of the pandemic. Only 8% of the companies in the small-cap Russell 2000 index still provide guidance, down from 21% a year ago. Although guidance plays […]
Morgan Stanley says earnings guidance is more unpredictable than ever, but focus on ‘high-quality factors’ can reveal long-term winners
Markets

Global strategy chief says the biggest concern for markets is the election, and breaks down the best ways to protect investments heading into November

Mark Grant of wealth management firm B. Riley FBR told CNBC “the biggest concern for the markets, frankly, is the election.” The chief global strategist said there’s risk because of the distinct differences between the Democratic and Republican tax proposal plans. Grant suggests investors have more cash, buy ETFs that […]
Global strategy chief says the biggest concern for markets is the election, and breaks down the best ways to protect investments heading into November