The Fed's upcoming meeting could lead to a 5-10% correction in the S&P 500, offering a buy chance. Check out the S&P 500's technical and macro setup.

As financial institutions continue to raise their certificate of deposit (CD) rates, American savers find themselves presented with increasingly attractive opportunities to grow their money. These developments have been spurred by multiple Federal Reserve rate increases since March 2022, which have had a cascading effect on interest rates across the financial sector. According to Bankrate’s data, the average 1-year annual percentage yield (APY) on CDs offered by their institution partners has reached an impressive 5.27%. This figure is particularly noteworthy because it surpasses the yield on 2-year Treasury bonds by more than half a percentage point. This indicates that consumers are finding more lucrative opportunities in CDs compared to government bonds or short-term bond ETFs, such as iShares 1-3 Year Treasury Bond ETF (NYSE:SHY), which are traditionally considered low-risk investments. Today’s Best CD Rates on the Market Here is a list of ...Full story available on Benzinga.com

Treasury yields continue to surge, defying expectations and causing further strain in the U.S. core bond market. On Tuesday, yields on the 2-year Treasury note reached 5.2%, marking its highest level in over 17 years. The last time short-term Treasury security yields were this elevated was back in June 2006 when the federal funds rate was holding steady at around 5% to 5.25%. This upward movement in yields followed the unexpectedly robust retail sales figures in September, published earlier today, which underscored the continued strength of consumer demand in the country. This, in turn, dispelled any concerns within the Federal Reserve about an economic slowdown. Additionally, inflation has proven to be slightly stronger than anticipated in the past month, with the Consumer Price Index (CPI) showing an annual increase of 3.7%, surpassing the earlier forecast of 3.6%. While market sentiment suggested the Federal Reserve is unlikely to raise interest rates further, with a 91% probability of rates remaining unchanged at the Nov. 1 FOMC meeting according to CME Group Inc.’s Fed Watch, the persistent resilience ...Full story available on Benzinga.com

My firm, LCM Capital Management, has always been a big proponent of buying, whenever possible for our clients, individual fixed income securities such as municipal bonds, CD’s, Treasuries etc. Owning and managing an investment advisory firm, as my partner and I have for the last 23 years, we are constantly inundated by mutual fund companies or Exchanged Traded Fund (ETF) providers explaining the “benefits” to us, for our clients, in using their products. In their defense, it’s their job and if I was in their shoes, I would do the same thing since firms such as ours have already done the heavy lifting part which is finding and retaining clients. But I’m not one of them and I believe our clients are better off and happier because of that. A few of the reasons we do not like these products are the fees associated with them and the fact that most of the products do not have a maturity, i.e. no set end date.  They can use leverage or margin which adds risks and costs to you and they can buy whatever the hell the manager wants up to a certain percentage of their portfolio. Here is a question for you, have you ever read a prospectus? In reading one, you would be surprised by some of the latitude you typically have signed up to give to your fund manager. Now mind you, you don’t often hear the portfolio manager, product ...Full story available on Benzinga.com

On CNBC’s "Halftime Report Final Trades," Liz Young of BNY Mellon Investment Management named Utilities Select Sector SPDR Fund (NYSE: XLU) as her final trade. Stephanie Link of Hightower said International Business Machines Corporation (NYSE: IBM) has a good yield. The company’s stock is up just 2% year-to-date, but is ...

With the Fed funds rate at 5.5%, its highest level since the early 2000s, the temptation of cash-like investments has never been more appealing, pushing investors to reconsider riskier assets such as stocks. While the Fed may opt to press the hold button this month, the end of rate hikes has not been yet declared. Indeed, the possibility that interest rates could remain high for far longer than many predicted only a few months ago appears to be becoming more realistic. The resilience of the U.S. economy in recent times has left many economists and analysts scratching their heads, prompting them to adjust their growth projections. This, in turn, has made the prospect of a looming recession seem even more remote. Consequently, we’ve witnessed a spike in U.S. Treasury yields, with the 2-year yield recently breaking the 5% barrier once more. Read Also: Fed Scrambles To Revise 2023 Projections As US Economy Surges Beyond Expectations Chart: 2-Year Treasury Yield & Fed Funds Rate

The U.S. economy has emerged as the year’s unexpected star performer, with Federal Reserve officials poised to double their 2023 growth projections due to a series of positive indicators. From consumer spending to residential investment, data has consistently outperformed expectations, prompting economists to revise their forecasts. The unofficial estimate from the Atlanta Fed even suggests a remarkable 5.6% annualized expansion in Q3. This dramatic turnaround from just three months ago, when recession fears loomed, could force the Fed to rethink its 2024 interest-rate cut projections, according to Bloomberg. Chart: Atlanta Fed GDP Nowcast Is Expected To Hit 5.6% in Q3 2023 Strongest Economic ...Full story available on Benzinga.com

Financial safeguard tools are on sale these days and protecting your portfolio against sudden stock market declines, or simply speculating on them, has never been as cheap as it is now. This insight comes from the Global Equity Derivatives Research team at Bank of America, which recently published a note analyzing the cheapness of market hedging costs. “Since our data began in 2008, it has never cost less to protect against an S&P drawdown in the next 12 months, as high rates align with low implied vol and correlation to offer a historic entry point for hedges,” analysts at Bank of America stated. Traditionally, there are several ways to hedge against market downturns, including investing in cash assets like short-term U.S. Treasury bonds, such as the iShares 1-3 Year Treasury Bond ETF (NYSE:SHY), buying volatility (VIX), as tracked by the Proshares Trust VIX Short-Term Futures ETF (NYSE:VIXY), or purchasing put options on stocks and indices. Among these, the put option stands out as having the highest potential gains should the market experience a significant downturn. Also Read: Biden Under Fire: Larry Summers Warns ‘Bidenomics’ Is ‘Increasingly Dangerous’ To US Economy How Does A Put Option On ...Full story available on Benzinga.com

Financial safeguard tools are on sale these days and protecting your portfolio against sudden stock market declines, or simply speculating on them, has never been as cheap as it is now. This insight comes from the Global Equity Derivatives Research team at Bank of America, which recently published a note analyzing the cheapness of market hedging costs. “Since our data began in 2008, it has never cost less to protect against an S&P drawdown in the next 12 months, as high rates align with low implied vol and correlation to offer a historic entry point for hedges,” analysts at Bank of America stated. Traditionally, there are several ways to hedge against market downturns, including investing in cash assets like short-term U.S. Treasury bonds, such as the iShares 1-3 Year Treasury Bond ETF (NYSE:SHY), buying volatility (VIX), as tracked by the Proshares Trust VIX Short-Term Futures ETF (NYSE:VIXY), or purchasing put options on stocks and indices. Among these, the put option stands out as having the highest potential gains should the market experience a significant downturn. Also Read: Biden Under Fire: Larry Summers Warns ‘Bidenomics’ Is ‘Increasingly Dangerous’ To US Economy How Does A Put Option On ...Full story available on Benzinga.com