SCHX News and Press, Schwab U.S. Large-Cap From 06/02/22

While some doomsday-er economists are expecting a deeply destructive hurricane (deep recession), others are only seeing a mild drizzle (soft landing) developing. Stock market veterans understand that stock prices can go down when current economic news is sunny but future expectations ...

Interest rates are going up, so bond and stock prices are going down. You can ride it out, but it could be an awfully long rough ride. The other option is to move out of stocks and bonds and either (1) hold other assets or (2) hedge your stocks and bonds. For further details...

The robust recovery from the pandemic recession has pushed U.S. inflation to a multi-decade high. Inflation expectations are showing signs of moving higher, aided by strong labor demand. Rai: Our baseline forecast is for the Fed to achieve a "soft landing". For further detai...

Two things any observer would take away from recent news media reports on the US economy are today’s high inflation and low unemployment. Monetary policymakers prime the economy for a recession by keeping interest rates too low for too long. Recessions normally occur after ...

Stocks had a ripsnorter of a rally last week and a lot of people are pondering the question in the title over this long weekend. Sentiment is certainly negative right now by several measures. Sentiment surveys (AAII, Investor’s Intelligence, etc.) are universally negative becau...

Numerous brokers, advisers, and portfolio managers have become much more cautious, led by customers worried about a recession this calendar year. While corporations are publicly maintaining bullish earnings views, shoppers and stores are reporting early signs of cutbacks, both in spen...

You know you’re in a bear market when China cuts a major interest rate and the US market responds with a paltry bounce and a continuation of its recent sell-off. As stocks continue to fall bond yields are following suit. The S&P 500 (SPX) remained below the 4000 level a...

According to the federal funds futures market, market participants expect the Fed to raise short-term rates to about 3% by early 2023 and then take a pause. The fiscal stimulus is not being repeated and the Fed has just commenced to shrink its balance sheet, which means it will no lon...

Our rising price problem is, more than anything, a supply problem, and reducing demand is certainly one way to tackle it. But returning to the pre-COVID growth rate doesn’t mean we are headed to recession, that contraction is in our immediate future. US stocks and REITs wer...

The classical definition of a recession is two consecutive quarters of negative GDP. The first report for Q1 indicated a decline of 1.4%. It will be interesting to see how Q2 GDP is handled after the July 4th holiday. If like the first quarter it is a negative, which looks more likely...