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Macroeconomic Outlook

All articles tagged with #macroeconomic outlook

finance2 years ago•5 min saved

"Insights on Selling Ares Capital Corp Stock: My Recent Experience"

The author explains why they recently sold their shares in Ares Capital Corp (ARCC), a Business Development Company (BDC). They cite three reasons for their decision: the unfavorable macroeconomic outlook, ARCC's relatively high valuation, and the defensive structure of its portfolio compared to its peers. The author believes that the anticipated recession and interest rate cuts will negatively impact ARCC's performance, making its current valuation unattractive. They reallocated their capital into more defensive opportunities that are expected to benefit from declining interest rates.

via Seeking Alpha|

#ares-capital-corp #bdc #finance

finance2 years ago•2 min saved

JPMorgan predicts grim outlook for S&P 500 in 2024

JPMorgan's global equity strategy team predicts that the S&P 500 will decline by approximately 8% in 2024 due to a challenging macroeconomic backdrop, softening consumer trends, and elevated geopolitical and political risks. Their projection of the S&P 500 finishing at 4,200 is significantly lower than most other Wall Street strategists. JPMorgan is less optimistic about earnings growth, expecting a 2-3% increase compared to the previous year, citing falling household savings, high borrowing costs, and cooling global demand. They believe that higher costs of credit will eventually slow the US economy, aligning with recent reports from the Federal Reserve and deteriorating outlooks from management teams.

via Yahoo Finance|

#earnings-growth #finance #jpmorgan