RBC Capital's Lori Calvasina on what's at stake for investors and markets
Lori Calvasina, RBC Capital Markets head of U.S. equity strategy, joins 'Squawk Box' to discuss the latest market trends, what's at stake for investors and markets, and the Fed's rate decision on Wednesday.
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Buy 4 Low-Beta Stocks VTSI, FNV, ESLT & PM Amid Geopolitical Chaos
The U.S. stock market is likely to be volatile due to escalating tensions between Israel and Iran, which have spiked oil prices and raised fears of broader regional conflict. Additionally, uncertainty around the Fed's interest rate decision amid rising geopolitical risks adds to market pressure. In this context, creating a curated portfolio of low-beta stocks is a prudent strategy. This provides a safeguard against the uncertain market, equipping investors to navigate volatility with greater resilience and foresight. Hence, stocks like VirTraInc. VTSI, Franco-Nevada Corporation FNV, Elbit Systems Ltd ESLT and Philip Morris International Inc. PM are worth betting on. Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security's price movement relative to the market. In this article, we are considering the S&P 500 as the market. If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1. For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating. We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio. Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month. Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable. 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Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Elbit Systems Ltd. (ESLT) : Free Stock Analysis Report Franco-Nevada Corporation (FNV) : Free Stock Analysis Report VirTra, Inc. (VTSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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an hour ago
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Foreign Demand for Treasuries Is Showing ‘Cracks,' BofA Says
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an hour ago
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Foreign Demand for Treasuries Is Showing ‘Cracks,' BofA Says
(Bloomberg) -- Central banks have been selling Treasuries since March, suggesting that they are diversifying away from dollar assets, according to Bank of America Corp. As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage Treasuries held by global central banks and other official entities in custody at the New York Federal Reserve fell $17 billion in the week through June 11 on average, extending their declines since late March to $48 billion. In addition, foreign holdings in the Fed's reverse repurchase agreement facility have dropped roughly $15 billion since late March. The decline is 'unusual' because central banks typically buy Treasuries when the dollar is weak, as it has been this year, strategists led by Meghan Swiber wrote in a note Monday, with the title 'Foreign UST demand shows cracks.' International appetite for Treasuries has been under increasing scrutiny in recent months. President Donald Trump's trade and fiscal policies have roiled financial markets and fueled speculation that overseas buyers will shun US assets — the so-called Sell America trade. The Bloomberg Spot Dollar Index is down about 8% in 2025, and is near a three-year low in part on concern that the levies will sour the US economy's prospects. 'This flow likely reflects official sector diversification away from USD holdings,' wrote the strategists, adding that they 'remain worried about the outlook for foreign demand.' Overseas investors have been an important source of buying for Treasuries. In fact, almost all the demand for Treasuries in the first quarter came from broker-dealers and foreign investors, the strategists said, citing the Fed's flow of funds data. That underscores 'an alarming picture' because the dealers' portion tends to reflect the gap between bond supply and demand from private investors, Swiber wrote. 'The foreign demand trajectory going forward is concerning especially in light of more global investors looking to reduce US assets or increase hedge ratios,' she said. The strategists also pointed to 'a continued weakening' in foreign participation at the most recent 2- and 20-year auctions. --With assistance from Alexandra Harris. American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants US Allies and Adversaries Are Dodging Trump's Tariff Threats As Companies Abandon Climate Pledges, Is There a Silver Lining? ©2025 Bloomberg L.P.
