Think of it as front-loading returns - or borrowing from the future.Įmerging market value stocks are still forecast to give the best return looking out to 2030, at 8.2% a year after inflation, according to the latest quarterly projection (as of 1/31/23) from Grantham Mayo Van Otterloo & Co. The latest outlook shows that this year's early stock market rebound has already diminished future returns. Mounting concerns that the Fed will continue hiking rates spooked investors Tuesday and pushed stocks to their worst day of 2023.Įvery month, the firm co-founded by noted value investor Jeremy Grantham assembles its best guess as to future returns from various asset classes over the next seven years. Louis Fed President James Bullard cautioned earlier Wednesday that the central bank's fight against inflation is far from over. The Fed's meeting minutes showed inflation remained "well above" the central bank's 2% target, adding that the labor market is still "very tight, contributing to continuing upward pressures on wages and prices."įed officials also noted that "inflation data received over the past three months showed a welcome reduction in the monthly pace of price increases but stressed that substantially more evidence of progress across a broader range of prices would be required to be confident that inflation was on a sustained downward path," the minutes said. Meanwhile, the Nasdaq Composite rose 0.13% to close at 11,507.07. The Dow Jones Industrial Average dropped 84.50 points, or 0.26%, ending at 33,045.09. Stocks ended lower on Wednesday as traders parsed through a summary of the Federal Reserve's most recent meeting, looking for clues on the central bank's next move against inflation.
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