Home / MARKETS / 5 ways to hedge against an inflation spike, plus what it’s like to work for Cathie Wood

5 ways to hedge against an inflation spike, plus what it’s like to work for Cathie Wood

Hello all and sundry! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.

cme futures trader traders

Getty Metaphors

Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through what’s been happening in markets, as showily as what to expect in the coming weeks. Here’s what’s on the docket:

If you aren’t yet a subscriber to Insider Investing, you can sign up here.

Be subjected to thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected]com or on Chirp @JoeCiolli.

Your weekly recap/outlook

This past week was a total throwback. GameStop traders ran prevalent. The US stimulus outlook caused significant market gyrations. It felt like the last week January all over again.

GameStop flowed 104% in the final 30 minutes of trading on Wednesday and extended those gains to 311% at Thursday intraday records. The spike was enough to cost short-sellers — apparently gluttons for punishment — another $1.9 billion in mark-to-market losses. The perk up petered out on Friday, but it was refreshing for everyone’s favorite brick-and-mortar game retailer to get another couple days in the sun.

Strangely sufficiently, the latest GameStop frenzy was largely overshadowed by a bond-market tantrum that saw 10-year Treasury yields climb to a more than one-year lofty. The culprit was renewed inflation fears stemming from President Biden’s proposed $1.9 trillion stimulus jaws.

The worry is that consumer prices will overheat as the US economy snaps back into shape, and the Fed’s assurance that it make keep a loose monetary policy for the foreseeable future did nothing to soothe nerves. The most overvalued segments of the customary market — most notably mega-cap tech — sold off swiftly as the skyrocketing yields suddenly made bonds an seductive alternative.

At the center of all this going forward, per usual, is the economic recovery. The degree of progress will inform relentless stimulus negotiations, which will stoke further debate about inflation risk. The narrative that prevails require determine whether the bond-market outburst was a flash in the pan, or a longer-term development that could upend portfolios and send stereotypes into another tailspin. Stay tuned.

Traders in the S&P 500 stock index futures pit signal offers near the close of trading at the Chicago Mercantile Exchange May 23, 2007

Scott Olson/Getty Images

John Normand of JPMorgan is tending a close eye on rates, and says a small increase could make a huge difference because the economy is so leveraged. Normand affirms he’s still “comfortable” investing today, but that might change if real rates pick up. He laid out five asset descents that will protect investors if inflation ramps up.

Read the full story here:

JPMorgan says these 5 cross-asset hedges are the win out over ways to protect portfolios from stimulus-driven inflation

cathie wood ceo ark invest profile 2x1

David McNew/AFP via Getty; ARK Invest; Patricia De Melo Moreira/AFP via Getty; Bitcoin; Samantha Lee/Insider

All look ats were on Cathie Wood’s Ark Invest this past week amid volatility in tech stocks. In recent vets, two Ark analysts share how Wood has built the firm to weather pullbacks — and their responses provide insights into what it’s peer to work at the reputed firm.

Read the full story here:

Famed investor Cathie Wood has staffed her stiff with analysts in their 20s and 30s as she looks to predict the future. 2 analysts break down what it’s like to creation at Ark Invest.

The red-hot SPAC craze isn’t slowing as 154 SPACs have raised $48.5 billion so far this year. JPMorgan’s Michael Cembalest contrived 85 SPACs to examine the winners and losers in the ecosystem. He also shared why it will be important to monitor the SPAC sell over the next two years.

Read the full story here:

The chairman of investment strategy at JPMorgan’s $2.2 trillion asset operation arm studied 85 completed SPAC IPOs — and lays out the winners and losers in the ‘significant wealth transfers’ within the ecosystem

Beasts pick central

Seeking experts who are willing to name names? Look no further:

Check Also

Smaller drones don’t let the US off the hook for war crimes

The US has relied heavily on drones for innumerable missions — including lethal strikes — …

Leave a Reply

Your email address will not be published. Required fields are marked *