Latest news with #JeffSchulze
Business Recorder
17 hours ago
- Business
- Business Recorder
European shares advance as markets take US jobs data in stride
FRANKFURT: European shares closed higher on Thursday as investors took in stride a stronger-than-expected US jobs report, with bank stocks leading gains as focus remained on a potential trade deal between the European Union and the United States. The pan-European STOXX 600 index closed 0.5% higher, in tandem with a 0.9% rise in the US S&P 500. Germany's DAX advanced 0.6%, while France's CAC 40 added 0.2%. US job growth was unexpectedly solid in June, with the nonfarm payrolls reading shooting above market estimates for the month. 'Today's good news should be treated as such by the markets, with equities rising despite the accompanying pickup in interest rates,' said Jeff Schulze, head of economic and market strategy at ClearBridge Investments. US interest rate futures show traders betting on a September start to Federal Reserve rate cuts and a total of just two quarter-point reductions by yearend, not the three rate cuts that they had favoured prior to the data. Banks were the biggest boost to the STOXX 600, with British lenders Natwest and Lloyds leading the charge at a more than 3% rise each. British stocks, bonds and the pound stabilised after losses on Wednesday as Prime Minister Keir Starmer's office rushed to give finance minister Rachel Reeves his full backing after she appeared in tears in parliament. UK midcaps climbed 1.2%, while the internationally-focussed blue-chip index added 0.6%. Also giving a leg up to global markets was the announcement of a deal between the United States and Vietnam ahead of next week's deadline set by President Donald Trump for new US trade tariffs worldwide. European Commission President Ursula von der Leyen said the European Union was aiming first for a trade agreement in principle with the United States before the deadline. The US also lifted export restrictions on Chinese-bound shipments from chip design software developers and ethane producers. German engineering company Siemens AG closed 0.8% higher after jumping as much as 3% in response to easing US-China trade tensions. Republicans in the US House of Representatives advanced Trump's massive tax-cut and spending bill toward a final yes-or-no vote on Thursday. Shares of some European renewable energy companies extended gains from the previous session, with Vestas up close to 7%. The final version of the US bill is seen as more positive for wind power than an earlier version.
Business Times
19 hours ago
- Business
- Business Times
Europe: Shares advance as markets take US jobs data in stride
EUROPEAN shares closed higher on Thursday as investors took in stride a stronger-than-expected US jobs report, with bank stocks leading gains as focus remained on a potential trade deal between the European Union and the United States. The pan-European Stoxx 600 index closed 0.47 per cent higher at 543.76, in tandem with a 0.9 per cent rise in the US S&P 500. Germany's DAX advanced 0.6 per cent, while France's CAC 40 added 0.2 per cent. US job growth was unexpectedly solid in June, with the nonfarm payrolls reading shooting above market estimates for the month. 'Today's good news should be treated as such by the markets, with equities rising despite the accompanying pickup in interest rates,' said Jeff Schulze, head of economic and market strategy at ClearBridge Investments. US interest rate futures show traders betting on a September start to Federal Reserve rate cuts and a total of just two quarter-point reductions by yearend, not the three rate cuts that they had favoured prior to the data. Banks were the biggest boost to the Stoxx 600, with British lenders Natwest and Lloyds leading the charge at a more than 3 per cent rise each. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up British stocks, bonds and the pound stabilised after losses on Wednesday as Prime Minister Keir Starmer's office rushed to give finance minister Rachel Reeves his full backing after she appeared in tears in parliament. UK midcaps climbed 1.2 per cent, while the internationally-focused blue-chip index added 0.6 per cent. Also giving a leg up to global markets was the announcement of a deal between the United States and Vietnam ahead of next week's deadline set by President Donald Trump for new US trade tariffs worldwide. European Commission President Ursula von der Leyen said the European Union was aiming first for a trade agreement in principle with the United States before the deadline. The US also lifted export restrictions on Chinese-bound shipments from chip design software developers and ethane producers. German engineering company Siemens AG closed 0.8 per cent higher after jumping as much as 3 per cent in response to easing US-China trade tensions. Republicans in the US House of Representatives advanced Trump's massive tax-cut and spending bill toward a final yes-or-no vote on Thursday. Shares of some European renewable energy companies extended gains from the previous session, with Vestas up close to 7 per cent. The final version of the US bill is seen as more positive for wind power than an earlier version. Accounts of the European Central Bank's last policy meeting showed ECB policymakers had cut rates to prevent an unwarranted tightening of monetary conditions in the face of elevated uncertainty around global trade. Shares of French voucher and benefits company Pluxee climbed 4.4 per cent after reporting an 11.1 per cent organic rise in its third-quarter operating revenue. REUTERS
Yahoo
12-05-2025
- Business
- Yahoo
It's typically a good time to invest in stocks — as long as you're patient
Market volatility has made the prospect of investing in stocks daunting in the Trump era. Regardless of near-term price swings, being patient over the long term has paid off throughout history. This is the fourth installment in BI's six-part series on making major life decisions during this period of massive change. Ask any financial advisor if now is a good time to buy stocks, and you'll likely get the same two words for an answer: It depends. You'll then get a couple of questions: What's your risk tolerance? What's your timeline? If you have either a low risk threshold or need the money in a few years' time, it's probably not a good time to buy. But if you possess the magical combination of having time on your side and the ability to shrug off volatility, history shows it's virtually always a good time to buy. The equity-investing landscape has been especially difficult during the Trump era. The reaction to the president's wide-reaching tariff proposals extended a post-inauguration sell-off that pulled the S&P 500 nearly 20% lower in a matter of weeks. But as Trump has backtracked on certain levies, and as the economic picture has remained robust, the index has swiftly recovered well over half of that. This dynamic was in full force on Monday as major US indexes soared more than 3% after the US and China agreed to substantial tariff cuts for 90 days. This is the fourth installment of BI's six-part series on making major life decisions in periods of immense policy-driven change. We've already covered best practices for: Starting a business Buying a house Switching jobs If you have a longer-term time horizon, history is on your side, according to Jeff Schulze, the head of economic and market strategy at ClearBridge Investments. On a recent Franklin Templeton podcast, Schulze pointed out that in the 34 times over the last 75 years when a drawdown of 10% has occurred, the S&P 500 has averaged positive returns over the next 12 months. The forward one-year return is even stronger when a recession hasn't materialized, averaging 14% over time. And even when a recession has struck, 12-month returns have been positive, although to a lesser degree. Still, every market cycle is different, and there are reasons to be concerned that a potential bear market this time around could be more severe. For one, valuations on the S&P 500 have recently been at some of their highest levels in history. The Shiller cyclically adjusted price-to-earnings ratio, which looks at current stock prices compared to a rolling 10-year average of earnings, is still at about 33. That's higher than at the market's peak before the 1929 crash. Stock valuations greatly inform 10-year forward returns. This has led top strategists like David Kostin of Goldman Sachs and Mike Wilson of Morgan Stanley to warn of lackluster returns for the S&P 500 in the decade ahead. Trump's 10% baseline tariffs are also seen potentially raising consumer prices while slowing economic growth — a 1970s-style stagflation scenario that investors are increasingly worried about. On an overall basis, however, stocks seemingly always recover and have delivered strong returns over multi-decade periods. For example, the S&P 500 is up 244% since its late 2007 peak just before the financial crisis. If you'd bought in at the market bottom in 2009, you'd be up nearly 700% in the period since. But there's no way to time the bottom perfectly. One way to mitigate this risk is by dollar-cost averaging. That's a fancy way of saying buying into the market at set intervals — perhaps every Friday, for example, or on the first of every month. So, if you had $10,000, you could buy in $500 at a time over the course of 20 weeks or months. That way, you buy when the market is up and when it is down. You take the risk of missing a rally over that time, but you also benefit from a more attractive buying point over the long term if the market falls further in the months ahead. Whichever way you decide to approach entering the market, your returns are likely to be good over the long run, if history is an accurate guide. Warren Buffett once said you should be OK with losing 50% or more of your money — on paper, at least — when you invest in stocks. In other words, you should have the stomach to withstand short-term volatility because you're in it for the long haul anyway. If you're disciplined enough to ignore any pain that comes along and can keep your eye on the prize far off on the horizon, then yes, now is a good time to buy. Read the original article on Business Insider
Yahoo
12-05-2025
- Business
- Yahoo
It's typically a good time to invest in stocks — as long as you're patient
Market volatility has made the prospect of investing in stocks daunting in the Trump era. Regardless of near-term price swings, being patient over the long term has paid off throughout history. This is the fourth installment in BI's six-part series on making major life decisions during this period of massive change. Ask any financial advisor if now is a good time to buy stocks, and you'll likely get the same two words for an answer: It depends. You'll then get a couple of questions: What's your risk tolerance? What's your timeline? If you have either a low risk threshold or need the money in a few years' time, it's probably not a good time to buy. But if you possess the magical combination of having time on your side and the ability to shrug off volatility, history shows it's virtually always a good time to buy. The equity-investing landscape has been especially difficult during the Trump era. The reaction to the president's wide-reaching tariff proposals extended a post-inauguration sell-off that pulled the S&P 500 nearly 20% lower in a matter of weeks. But as Trump has backtracked on certain levies, and as the economic picture has remained robust, the index has swiftly recovered well over half of that. This dynamic was in full force on Monday as major US indexes soared more than 3% after the US and China agreed to substantial tariff cuts for 90 days. This is the fourth installment of BI's six-part series on making major life decisions in periods of immense policy-driven change. We've already covered best practices for: Starting a business Buying a house Switching jobs If you have a longer-term time horizon, history is on your side, according to Jeff Schulze, the head of economic and market strategy at ClearBridge Investments. On a recent Franklin Templeton podcast, Schulze pointed out that in the 34 times over the last 75 years when a drawdown of 10% has occurred, the S&P 500 has averaged positive returns over the next 12 months. The forward one-year return is even stronger when a recession hasn't materialized, averaging 14% over time. And even when a recession has struck, 12-month returns have been positive, although to a lesser degree. Still, every market cycle is different, and there are reasons to be concerned that a potential bear market this time around could be more severe. For one, valuations on the S&P 500 have recently been at some of their highest levels in history. The Shiller cyclically adjusted price-to-earnings ratio, which looks at current stock prices compared to a rolling 10-year average of earnings, is still at about 33. That's higher than at the market's peak before the 1929 crash. Stock valuations greatly inform 10-year forward returns. This has led top strategists like David Kostin of Goldman Sachs and Mike Wilson of Morgan Stanley to warn of lackluster returns for the S&P 500 in the decade ahead. Trump's 10% baseline tariffs are also seen potentially raising consumer prices while slowing economic growth — a 1970s-style stagflation scenario that investors are increasingly worried about. On an overall basis, however, stocks seemingly always recover and have delivered strong returns over multi-decade periods. For example, the S&P 500 is up 244% since its late 2007 peak just before the financial crisis. If you'd bought in at the market bottom in 2009, you'd be up nearly 700% in the period since. But there's no way to time the bottom perfectly. One way to mitigate this risk is by dollar-cost averaging. That's a fancy way of saying buying into the market at set intervals — perhaps every Friday, for example, or on the first of every month. So, if you had $10,000, you could buy in $500 at a time over the course of 20 weeks or months. That way, you buy when the market is up and when it is down. You take the risk of missing a rally over that time, but you also benefit from a more attractive buying point over the long term if the market falls further in the months ahead. Whichever way you decide to approach entering the market, your returns are likely to be good over the long run, if history is an accurate guide. Warren Buffett once said you should be OK with losing 50% or more of your money — on paper, at least — when you invest in stocks. In other words, you should have the stomach to withstand short-term volatility because you're in it for the long haul anyway. If you're disciplined enough to ignore any pain that comes along and can keep your eye on the prize far off on the horizon, then yes, now is a good time to buy. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
12-05-2025
- Business
- Business Insider
It's always a good time to invest in stocks — as long as you're patient
You'll then get a couple of questions: What's your risk tolerance? What's your timeline? If you have either a low risk threshold or need the money in a few years' time, it's probably not a good time to buy. But if you possess the magical combination of having time on your side and the ability to shrug off volatility, history shows it's virtually always a good time to buy. The equity-investing landscape has been especially difficult during the Trump era. The reaction to the president's wide-reaching tariff proposals extended a post-inauguration sell-off that pulled the S&P 500 nearly 20% lower in a matter of weeks. But as Trump has backtracked on certain levies, and as the economic picture has remained robust, the index has swiftly recovered well over half of that. This dynamic was in full force on Monday as major US indexes soared more than 3% after the US and China agreed to substantial tariff cuts for 90 days. This is the fourth installment of BI's six-part series on making major life decisions in periods of immense policy-driven change. We've already covered best practices for: What historical data says If you have a longer-term time horizon, history is on your side, according to Jeff Schulze, the head of economic and market strategy at ClearBridge Investments. On a recent Franklin Templeton podcast, Schulze pointed out that in the 34 times over the last 75 years when a drawdown of 10% has occurred, the S&P 500 has averaged positive returns over the next 12 months. The forward one-year return is even stronger when a recession hasn't materialized, averaging 14% over time. And even when a recession has struck, 12-month returns have been positive, although to a lesser degree. Still, every market cycle is different, and there are reasons to be concerned that a potential bear market this time around could be more severe. For one, valuations on the Samp;P 500 have recently been at some of their highest levels in history. The Shiller cyclically adjusted price-to-earnings ratio, which looks at current stock prices compared to a rolling 10-year average of earnings, is still at about 33. That's higher than at the market's peak before the 1929 crash. GuruFocus Stock valuations greatly inform 10-year forward returns. This has led top strategists like David Kostin of Goldman Sachs and Mike Wilson of Morgan Stanley to warn of lackluster returns for the S&P 500 in the decade ahead. Trump's 10% baseline tariffs are also seen potentially raising consumer prices while slowing economic growth — a 1970s-style stagflation scenario that investors are increasingly worried about. On an overall basis, however, stocks seemingly always recover and have delivered strong returns over multi-decade periods. For example, the S&P 500 is up 244% since its late 2007 peak just before the financial crisis. How to get around trying to time the market If you'd bought in at the market bottom in 2009, you'd be up nearly 700% in the period since. But there's no way to time the bottom perfectly. One way to mitigate this risk is by dollar-cost averaging. That's a fancy way of saying buying into the market at set intervals — perhaps every Friday, for example, or on the first of every month. So, if you had $10,000, you could buy in $500 at a time over the course of 20 weeks or months. That way, you buy when the market is up and when it is down. You take the risk of missing a rally over that time, but you also benefit from a more attractive buying point over the long term if the market falls further in the months ahead. Whichever way you decide to approach entering the market, your returns are likely to be good over the long run, if history is an accurate guide. Warren Buffett once said you should be OK with losing 50% or more of your money — on paper, at least — when you invest in stocks. In other words, you should have the stomach to withstand short-term volatility because you're in it for the long haul anyway.
