Central banks may have made bond markets wobble, but stocks are still going from strength to strength, says Nicholas Megaw in the Financial Times. Strong US third-quarter earnings have put worries about inflation on the back burner. Profits at S&P 500 firms rose by about 40% year-on-year between July and September. Sales increased by roughly a fifth.
“Large US companies are broadly managing to weather the surge in the prices of raw materials, supply chain bottlenecks and shortages in the labour market,” say Joe Rennison and Colby Smith in the same paper. Corporate profit margins have fallen back slightly, but by much less than analysts had been expecting.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
“It doesn’t get any better than this for the stockmarket,” says Ben Levisohn in Barron’s. A “stellar” jobs report – the US economy added 531,000 jobs last month – only adds to a picture of an American economy regaining its vigour after a sluggish summer. There is growing hope that new antiviral treatments from Merck and Pfizer will soon draw a line under the pandemic era.
To top it all, Congress has finally approved a $1.2trn infrastructure bill after months of wrangling. Equities fell by 5% in September, sparking talk of a correction (defined as a stockmarket decline of 10%). Instead, equities have since rallied by 7%. Is that a reason to sell? With the bulls out in force, probably not. “Bet on a rip-roaring rally into the end of the year.”
-
‘We’ve saved hundreds of pounds in energy by installing solar panels’A couple say they have cut their energy bills by hundreds of pounds thanks to solar panels, and they hope to recoup the cost of the installation within a decade
-
Where to travel in 2026From moon-shaped beaches in Japan to luxury fly fishing in Montana, we look at where to travel in 2026
-
Global investors have overlooked some of China’s best growth stocksOpinion Dale Nicholls, portfolio manager, Fidelity China Special Situations, highlights three Chinese businesses where he’d put his money
-
How Next defied the odds and positioned itself as a British high-street stapleNext rose from a near-death experience and now thrives as a high-street staple. What's driving its success – and should you invest in the retailer?
-
Alok Sama on AI and how to invest in the future of technologyInterview Alok Sama, the former president and chief financial officer of Masayoshi Son’s investment vehicle SoftBank Group International, explains AI’s potential
-
The private equity puzzleListed private equity trusts still trade at large discounts, despite sales that validate their valuations
-
Why investors should avoid market monomaniaOpinion Today’s overwhelming focus on US markets leaves investors guessing about opportunities and risks elsewhere
-
Can Rachel Reeves save the City?Opinion Chancellor Rachel Reeves is mulling a tax cut, which would be welcome – but it’s nowhere near enough, says Matthew Lynn
-
Pierre-Édouard Stérin wants to make France great againConservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Global investors have overlooked the top innovators in emerging marketsOpinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
