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Analysis: U.S. investors looking for protection as inflation pressures bubble, stocks volatile


Analysis: U.S. investors looking for protection as inflation pressures bubble, stocks volatile
05/14/2021 | 01:48am EDT
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NEW YORK (Reuters) - U.S. investors grappling with the latest stock volatility and evidence of inflation say they have been positioning themselves for more unexpected kinks in the road to recovery.
The moves to hold assets that could withstand a prolonged surge in inflation come as data earlier in the week showed U.S. consumer prices rose by the largest amount in 12 years in April in a jump that was well above Wall Street s expectations. Bottlenecks in global supply chains and scarcity in the labor market were among the reasons for the surge in prices, Labor Department data showed. ....

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US investors looking for protection as inflation pressures bubble


US investors looking for protection as inflation pressures bubble
Posted : 2021-05-14 14:25
Updated : 2021-05-14 14:25
In this Nov. 23, 2020, file photo, the New York Stock Exchange is seen in New York. U.S. investors grappling with the latest stock volatility and evidence of inflation say they have been positioning themselves for more unexpected kinks in the road to recovery. AP-Yonhap
U.S. investors grappling with the latest stock volatility and evidence of inflation say they have been positioning themselves for more unexpected kinks in the road to recovery.
The moves to hold assets that could withstand a prolonged surge in inflation come as data earlier in the week showed U.S. consumer prices rose by the largest amount in 12 years in April in a jump that was well above Wall Street s expectations. Bottlenecks in global supply chains and scarcity in the labor market were among the reasons for the surge in prices, Labor Department data showed. ....

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Speculative Sectors Take Big Hits as the Overall Stock Market Shows Signs of Exhaustion


His advice:  Now is probably a good time to do some spring cleaning in your portfolio.
That notion is not yet consensus.  
We re talking about peak growth, but the idea here is that this reopening is just getting started, Franklin Templeton senior portfolio manager Mike Labella said on CNBC.  We just hit a major milestone with 50% vaccinations in the United States, and that number is only going to get better in the United States and in Europe, which is a couple of months behind. So there s really more room to run in this rally, but it s probably going to come more from value and cyclical sectors than from the tech trade, which is more of last year s. ....

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One Year Ago Stocks Dropped 12% in a Single Day. What Investors Have Learned Since Then


The Nasdaq dropped 12.3%, its largest percentage loss ever.
The S&P 500 would not bottom until March 23, a week later.  From the Feb. 19, 2020, high to the March 23 bottom, the S&P would decline about 34%.
Then, almost as quickly, the market reversed.  By August, the S&P was back to its old highs.
 
The world is now a very different place.
What changed?
For Leuthold s Jim Paulsen, it was simple: The Fed and the government went big. Very big.
Investors sell fast and big and policy officials act fast and big to save the world, Paulsen said. That week, the Fed instituted a massive monetary stimulus program, cutting rates almost to zero, and unveiled plans for massive asset purchases. ....

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