lastminute share shopping could keep rally hot
Last Updated : GMT 03:29:34
Arab Today, arab today
Arab Today, arab today

Last-minute share shopping could keep rally hot

Arab Today, arab today

Arab Today, arab today Last-minute share shopping could keep rally hot

New York - Arabstoday

  Portfolio managers will be doing some last-minute shopping for winners from the big US stock market rally as they take part this week in the quarter-end ritual of window dressing. The activity could help stocks resume their upward course in the week ahead and keep a long-expected pullback at bay. The benchmark Standard & Poor\'s 500 index is up 11.1 per cent so far for the first quarter and the year. That would follow a gain of 11.2 per cent for the fourth quarter. If the trend holds, the S&P 500 will book its best back-to-back quarters since the second and third quarters of 2009. The S&P 500 lost some ground in the past week, ending down 0.5 per cent after five straight weeks of gains, but that\'s only its second negative week for the year. Much of the quarter\'s gains have been driven by signs of improvement in the US economy, particularly a pickup in jobs, which has been lagging other areas in the recovery. Window dressing typically involves investors grabbing some of the quarter\'s best performers to dress up their portfolio listings. Some of the last-minute buying is likely to come from the hedge fund community, said Phil Orlando, chief equity strategist and senior portfolio manager for Federal Global Investment Management Corp in New York. Hedge funds \"by and large have not been believers about the improvement in the domestic economy ... so they\'ve been very much out of the market. Yet here we are with the first quarter looking like the best first quarter since 1998,\" he said. \"They\'ve got a huge gain to catch up.\" But retail investors, he said, have probably also noticed that they\'ve missed a lot by having kept their money in Treasuries and other fixed-income assets over the quarter. \"They have woken up to the realisation that the surge in yields has resulted in a significant loss of capital for them,\" Orlando said. If the S&P 500 manages to end the first quarter with an 11.1 per cent gain, that would be its best quarterly performance since the second quarter of 2009. By comparison, the 10-year US Treasury note\'s yield has risen nearly 36 basis points. If this holds, the 10-year note\'s yield will record a quarterly rise for the first time in a year. In the final week of the first quarter, Wall Street will get a more complete look at the economy through a whole suite of indicators. Among them will be March consumer confidence on Tuesday, February durable goods orders on Wednesday, the final look at fourth-quarter Gross Domestic Product on Thursday, plus February personal income and spending data on Friday as well as the Chicago Purchasing Managers Index, and the final reading on March consumer sentiment from the Thomson Reuters/University of Michigan surveys. \"The bottom line is: The economy is improving and while inflation is trending higher, there is no threat of corporate profits disintegrating,\" said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. \"I am looking for a rally,\" he said. Gains this quarter have been broad-based, with most of the 10 S&P sectors on track to end the quarter in positive territory. But the S&P 500 financial sector index and the S&P technology sector index stand out, with gains so far of 21 per cent for the financials and 19.9 per cent for techs. The more defensive S&P 500 utility and consumer staples sectors have underperformed, with the utility index down 3.9 per cent and the consumer staples index up 3.7 per cent so far. Still, the S&P energy sector, a cyclical sector that tends to gain with the economy such as financials and technology, is up just 4 per cent for the quarter so far. Because of the S&P 500\'s big move this quarter, some strategists expect to see some funds shift out of equities. \"Given the fact that stocks have had a big move and bonds have sold off, portfolio managers in asset-allocation mode may trim a little bit of equity holdings and move them into fixed-income holdings to rebalance target weights,\" said Fred Dickson, chief market strategist of D.A. Davidson & Co. in Lake Oswego, Oregon. According to Thomson Reuters\' Lipper service, investors in US-domiciled equity funds have splurged so far in the first quarter of the year, pumping a net $32.7 billion (Dh120.10 billion) in fresh capital into the sector. This follows net outflows for the previous nine-month period, which saw a high of $66 billion in net redemptions occur in the second quarter of 2011. For all of last year, equity funds experienced net outflows of $50.4 billion, only the second full year of redemptions since Lipper started tracking fund flow data in 1992. The S&P 500 ended 2011 virtually unchanged, but is up 23 per cent since the end of September. Even as money has moved back into equities, taxable bond funds are also enjoying a banner start to the year. Lipper data shows $85 billion in net inflows so far in 2012, on pace to be the best since the $98 billion of net inflows recorded in the first quarter of 2010. Taxable bond funds have not had a negative quarter since the fourth quarter of 2008. The record inflow year for this category was 2009 when investors bought an additional $384 billion of taxable bond funds. The last full year of net outflows was the $54 billion in 2000. Stocks have benefited not just from the upbeat economic data, but from speculation that the Federal Reserve could add further stimulus to the economy. \"What may have driven some of this sustained support for the market is continued indications from the Fed that QE3 is not out of the question. That would certainly be extremely negative for anybody who has a short position on US equities,\" said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland. From gulfnews      

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

lastminute share shopping could keep rally hot lastminute share shopping could keep rally hot

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

lastminute share shopping could keep rally hot lastminute share shopping could keep rally hot

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday