It was risk-off late last week, but today’s bounce in US stocks has the bulls cheering once more. The S&P 500 closed up 2.0% on Wed., Sep. 9. Although the gain was well below the high point of the day, it was strong enough to inspire forecasts that last week’s slide was one more temporary detour on the road to ever higher prices.
Last week I briefly reviewed the case for casting a wary eye on expecting the standard stock-bond asset allocation to fulfill its historical role as a risk-management tool. Let’s extend this thought experiment by comparing results for possible bond replacements in the classic 60/40 stock/bond portfolio.
AstraZeneca Covid-19 vaccine study put on hold due to adverse reaction: STAT
Wildfires burning across three Western states: CNN
Trump to announce further reduction in US troops in Iraq: Reuters
Tensions rise on India-China border as shots are fired: NYT
US companies in China expect bilateral tensions will last for years: Reuters
China’s consumer inflation eased to moderate 2.4% annual pace in Aug: SCMP
Oil prices fall sharply on rising supply and falling demand: CNN
Consumer credit in July rose for a second month: BBG
US small business sentiment edges up in Aug — above 46-year avg: NFIB
10-year US Treasury yield: Going nowhere fast: