Monday Takeaways: Bulls Accelerate Through Moody's Caution Flag | Shah Gilani Chief Investment Strategist | The melt-up continues despite Moody's late-to-the-party downgrade... Markets are over 20% higher from Liberation Day Blues, looking like a rocket taking off with five straight days of gains last week. But Friday's surprise move by Moody's - downgrading the U.S. from AAA to AA1 - has sent Treasury yields jumping... - 30-year yields back up knocking on 5%
- 10-year yields north of 4.54%
- Futures down more than 1% across indexes Monday morning
Should you be concerned? History tells us something different... When S&P downgraded the U.S. in 2011, markets rallied for the next decade. When Fitch downgraded in August 2023, no recession followed. With the S&P inches from new record highs but Goldman calling for a 20% pullback, is it time to be aggressive or cautious? Click here or on the image below to discover why this week might not be the time for heavy capital allocation. Cheers, Shah Want more content like this? | | | |
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