The world is crazy but stocks are up?
A markets mystery has perplexed some analysts this year: Why are stocks sitting near all-time highs while the global economy is rocked by geopolitical conflict and inflation pressures?Why it matters: The usual retort is that the stock market is not the economy, but a new report from Moody's offers a more nuanced explanation:Markets have adjusted to the new economic world order — you just have to know where to look.How it works: You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt.And it's visible under the hood in the stock market, where certain sectors are struggling.
Reported by 1 outlet — Axios. See all sources ↓
A markets mystery has perplexed some analysts this year: Why are stocks sitting near all-time highs while the global economy is rocked by geopolitical conflict and inflation pressures?Why it matters: The usual retort is that the stock market is not the economy, but a new report from Moody's offers a more nuanced explanation:Markets have adjusted to the new economic world order — you just have to know where to look.How it works: You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt.And it's visible under the hood in the stock market, where certain sectors are struggling. Software stocks have fallen this year, thanks to AI, as have those for autos, consumer goods and apparel, as consumers struggle with higher prices.The new hot sectors, meanwhile, are energy, because of the Iran war and other conflicts, and hardware and semiconductors, as investors flock to the picks and shovels of the AI boom.Data: FactSet; Chart: Emily Peck/AxiosThe big picture: There have been huge economic shifts since the pandemic. Until then, we were in a post-2008 financial crisis regime.
Read the full report at Axios ↗
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- What's the story?
- A markets mystery has perplexed some analysts this year: Why are stocks sitting near all-time highs while the global economy is rocked by geopolitical conflict and inflation pressures?Why it matters: The usual retort is that the stock market is not the economy, but a new report from Moody's offers a more nuanced explanation:Markets have adjusted to the new economic world order — you just have to know where to look.How it works: You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt.And it's visible under the hood in the stock market, where certain sectors are struggling.
- How widely is it covered?
- 1 outlet, average source rating 7.0/10.
- When was it last updated?
- 13m ago.
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The world is crazy but stocks are up?
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