From Washington to Buenos Aires, nations’ mutually reinforcing commitment to open markets is disintegrating. In response, investors are rearranging portfolios, businesses are rethinking investments and policy makers are struggling to respond—all of which are pushing the global economy closer to recession.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
PLANNING & INVESTING
How Five Money Managers Are Playing Swings in the Market: Nearly every market has seesawed this August after a trade dispute between the U.S. and China kick-started a downturn in stocks. Some investors are seeing an opportunity in the action. Here’s how some large money managers are playing the market.
From Dow Jones Newswires
Some analysts are citing low liquidity as a key factor driving the market’s outsize swings, as was the case last December when risk assets tumbled across the board. Even accounting for the fact that August tends to be a slower month on trading desks, liquidity has been lower than normal this August in stocks, bonds and currencies, JPMorgan Chase analysts said in a recent note. Analysts are wary that lower liquidity can exacerbate market moves by making it more difficult to buy or sell large quantities of an asset without pushing its price up or down. (firstname.lastname@example.org; @AmrithRamkumar)
The probability of the U.S. Federal Reserve cutting interest rates has risen “significantly” as the U.S. 10-year versus 2-year bond yield curve inversion indicates a recession is “more and more likely”, says Saxo Bank’s chief economist and chief investment officer Steen Jakobsen. This higher likelihood of recession increases the chance of an average selloff in equities of at least 25%, he says. The “Fed needs to cut [interest rates by] 50 bps and soon,” he says. The 10-year Treasury bonds dropped briefly below 2-year Treasuries for the first time since 2007 on Wednesday morning. (email@example.com; @lorena_rbal)
BUSINESS & PRACTICE
More U.S. Companies Consider Outside CFO Candidates: UPS, Ford and Intel all hired outside finance chiefs in recent months, highlighting a wider trend among American companies.
Vanguard Fund Pays Price for Sinful Lapse: Fund giant Vanguard recently sent a notice to clients that its ESG U.S. Stock ETF held, among other objectionable companies, shares of oil-service company Halliburton and gun maker Sturm Ruger for several weeks, according to ThinkAdvisor.
Once Asking $1 Billion, America’s Priciest Listing Is Scheduled for Auction: Los Angeles’ priciest-ever real estate listing, a 157-acre Beverly Hills parcel known as “The Mountain,” is scheduled to be sold at auction Thursday. If the sale proceeds as scheduled, it could bring an end to a decades-old saga of infighting and financial strife.
TRAVEL & LIFESTYLE
Portland, Maine: An Incomparable Insider’s Guide: James Beard award-winning restaurants line cobblestone streets, breweries turn out serious suds and the lobster roll is in a constant state of upscale reinvention. Portland, Maine, is a food-lover’s fantasyland, but the culture goes well beyond the plate.
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