Trump announced a $20 billion investment plan to build Datacenters in the USA.
① The USA's elected president Trump announced a 20 billion USD investment plan to build new Datacenters to maintain the USA's competitiveness in emerging technology fields; ② The first phase will be implemented in 8 states, mainly supporting AI and cloud technology; ③ Trump hopes to demonstrate the positive impact of his policies by attracting more foreign entities to do Business in the USA, laying the foundation for his second term.
Howard Marks: Is there a bubble in the U.S. stock market now?
Max believes that the U.S. stock market may have some bubbles, but it is not out of control. The expected PE for the S&P 500 Index is 23.6 times, and compared to valuation parameters, a more effective way to determine bubbles is through psychological diagnosis. Currently, there is no talk from people saying 'there are no prices that are unreachable,' which is a clear indicator of irrational thinking and a sign of bubbles.
Wall Street's New Year interest rate "bet": from several rate cuts to whether there will be any rate cuts at all.
On Tuesday, the 10-year U.S. Treasury yield, known as the "anchor of Global asset pricing," further reached its highest level in eight months; the betting game surrounding the Federal Reserve's interest rate direction seems to have completely shifted from several rate cuts this year to whether further cuts will actually happen...
With U.S. Treasury yields rising like this, should concern be raised for the U.S. stock market?
According to Morgan Stanley's analysis, as the yield on 10-year U.S. treasury bonds rises above 4.5%, it has created pressure on U.S. stock valuations. The correlation between the S&P 500 Index and U.S. treasury yields has turned into a "significant negative correlation." Considering the poor market breadth, the downward pressure on the dollar, and the Federal Reserve's hawkish policy outlook, U.S. stocks may face severe challenges in the next six months.
Fed Meeting Minutes to Shed Light on Rate-Cut Path in 2025
Bulls beware: The stormy bloodbath in the US Treasury is not completely over.
Deutsche Bank's strategists believe that the US Treasury bond bulls will face more pain in the future, but all of this will soon come to an end.