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LONDON/NEW YORK (Reuters) - Bitcoin, shares of Tesla and a high-flying exchange traded fund (ETF) fell on Tuesday, retreating from recent rallies in a volatile session that gave investors a gut check.
It was the latest sign of a possible pause in a rally that has buoyed a broad range of assets. Investors may be growing wary of sky-high valuations, while recent rises in Treasury yields could dim the allure of stocks and other comparatively risky investments.
“We have been in a sustained rally and there was a lot of leverage in the system,” said Ty Young, cryptoasset research analyst at crypto data platform Messari, of Bitcoin. “Corrections are to be expected during a bull run and not surprising when looking at previous cycles.
5 Min Read
NEW YORK (Reuters) - The rollercoster ride in bitcoin since the start of the year has not dampened wealth manager Jim Paulsen’s enthusiasm for the cryptocurrency.
FILE PHOTO: Representation of the virtual currency Bitcoin is seen on a motherboard in this picture illustration taken April 24, 2020. REUTERS/Dado Ruvic/Illustration
Yet Paulsen, chief investment officer for Leuthold Group, which manages $1 billion, cannot own bitcoin in client portfolios due to regulatory constraints. This has left him on the sidelines watching the world’s most popular cyrptocurrency surge more than 900% since its March lows in volatile trading that also saw bitcoin lose more than 20% in the span of a few days.
Shares of special-purpose acquisition companies (SPACs), for months the darling of Wall Street as they attracted unprecedented investor interest, slid again this week amid concerns that their valuations have become inflated.
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FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won
NEW YORK (Reuters) - A major exchange-traded fund tracking the U.S. investment-grade corporate bond market fell on Friday to its lowest since May 2020, after blowout employment data and comments from Federal Reserve Chair Jerome Powell on Thursday increased duration risk.
BlackRock’s iShares iBoxx Investment Grade Corporate Bond ETF fell to a 10-month low of $129.27 and was last trading down 0.33% to $129.51. Since the start of the year, LQD has lost more than 6%.
The improving economic data and increase in inflation expectations that have driven the U.S. benchmark 10-year Treasury yield to its highest in more than a year have also driven yields up - and prices down - on investment-grade debt. Investment-grade bonds tend to have longer durations than those in the junk-rated market. They are therefore more sensitive to inflation risks,
By Reuters Staff
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FILE PHOTO: A sign is seen outside the 11 Wall St. entrance of the New York Stock Exchange (NYSE) in New York, U.S., March 1, 2021. REUTERS/Brendan McDermid
(Reuters) - U.S.-based stock funds in the week ended Wednesday posted $3.3 billion outflows, according to Lipper.
U.S. taxable bond funds attracted $8.2 billion, the 11th straight weekly inflow and money market funds drew $23.6 billion, the largest inflow since May, Lipper data published late Thursday showed.
U.S. municipal bond funds shed $605 million, the first outflow since November.
Reporting by Alden Bentley; Editing by Toby Chopra