David Rosenberg, chief economist and strategist at Rosenberg Research and the former chief North American economist at Merrill Lynch, isn't buying the tough...
The bond bears have been in ascendance this week, even before the release of the latest minutes from the last Federal Open Market Committee meeting. The yield on the 10-year Treasury has jumped 23.7 basis points this week, the largest four-day yield gain since June 5, 2020, as the Fed minutes showed discussion of a fast winddown of its balance sheet alongside rising interest rates.
Dating back to 2012, the Fed’s forecasts on rates have been correct 37% of the time, accurate on core inflation 29% of the time, accurate on unemployment 24% of the time and accurate on real gross domestic product growth 17% of the time. And the Fed tends to be too bullish on growth, he adds. He recommends in the stock market shying away from cyclical sensitivity and toward defensive growth such as healthcare, staples and utilities; and in corporate credit, trading up in quality.
Absci ABSI, -12.78% shares rocketed after the biotech inked a drug discovery collaboration deal with chemicals company Merck MRK, -0.06%, with up to $610 million in fees and milestone payments.
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