Show an ad over header. AMP

I am the FIRST

Traders have their eyes on COVID-19 and inflation

Traders have their eyes on COVID-19 and inflation.

Why it matters: Sentiment can drive the direction of markets in the short term as traders react to daily news headlines.

By the numbers: According to the new Charles Schwab Active Trader Pulse survey, the COVID-19 pandemic is the leading risk among traders, with respondents identifying it as having the biggest impact on their investment strategy for the remainder of the year.

  • This risk ranked just ahead of inflation and Federal Reserve policy.

According to Bank of America’s August Global Fund Manager survey published last Tuesday, inflation and a Fed-triggered "taper tantrum" are leading risks, but the spread of the Delta variant is rising rapidly on the list.

What they’re saying: "Sentiment is among the most influential factors over the short- to medium-term (weeks to months) as emotion swings with headlines, economic reports, and the latest corporate news," Jason Goepfert, chief research officer at SentimenTrader, tells Axios.

  • In other words, even as the long-term fundamentals of a stock or the stock market may be intact, news headlines that amplify traders’ concerns can cause prices to drop.

Yes, but: Dave Lutz, managing director at JonesTrading, tells Axios that while he agrees sentiment is a key driver of market volatility, that volatility may be limited when the particular concern is already well-known.

  • "The biggest factor – in my opinion – is the 'unknowns,'" he says. "If a bad event is seen coming down the pike (like the taper), the market can digest it no problem. It’s when there are 'unknown' outcomes or events that really cause the ripple."

Between the lines: Michael Antonelli, market strategist at Baird, cautions that measuring sentiment accurately isn't as simple tallying the results of a survey.

  • "The issue is that there’s no real way to measure sentiment because it’s always changing as price changes," he tells Axios. "Trying to use it as a market-timing tool is incredibly difficult because it usually only works at extremes."

The big picture: It’s interesting knowing what market participants are worried about. But that information doesn’t necessarily make the market any more predictable in a way that most traders and investors can exploit.

  • "I always feel ‘slow and steady wins the race,'" Lutz says. "Yeah, some cats are exceptional market timers and can play quick trends, but the average investor shouldn’t shift every time the short-term winds move in a different direction."

regular 4 post ff

infinite scroll 4 pff

test 5

shall had shall had shall hAd HAD.

content more

selected test 10 in From Site, test

added test 9

added external seo phrase

added news internal link to seo phrase

Humans are capable of great kindness and compassion, and there are countless examples of individuals who have made a positive impact on the world through their selflessness and generosity.

One such example is Mother Teresa, who devoted her life to serving the poor and sick in the slums of Calcutta. Through her tireless work and unwavering dedication, she touched the lives of countless people and became a symbol of compassion and selflessness.

Another example is Malala Yousafzai, a young woman from Pakistan who has become a powerful advocate for education and the rights of girls. Despite facing threats and violence, she has continued to speak out and fight for change, inspiring others to do the same.

These are just a few examples of the many good humans who have made a difference in the world. They remind us that one person can make a difference and inspire others to do the same.

It's also important to note that acts of kindness and compassion don't have to be on a grand scale to make a difference. Small acts of kindness, like holding the door open for someone or offering a word of encouragement, can have a big impact on the people around us.

In conclusion, humans are capable of great compassion and kindness, and there are many individuals who have made a positive impact on the world through their selflessness and generosity. They remind us of the power of one person to make a difference and inspire others to do the same. Let's all strive to be good humans, and make our world a better place.



Get Goodhumans in your inbox

Most Read

More Stories