"Now that the Fed is unlikely to raise interest rates over the near term, the biggest risk to the economy and the markets is trade tensions with China," said Alan Gayle, president of Via Nova Investment Management.
U.S. funds prefer domestic assets and a but bigger cash buffer
"The combination of aggressive Federal Reserve rate hikes, an escalating and potentially prolonged trade dispute with China and the upcoming mid-term elections has generated a great deal of anxiety for the markets," said Alan Gayle, president of Via Nova Investment Management. "Fear and uncertainty are currently dominating market psychology."
World stocks hit month peak; dollar firms to three-week high
U.S. funds preferred cash in April at expense of bonds
Treasury yield milestone may augur changing tide for risk
“I don't think that the 3 percent level necessarily makes bonds a buy,” said Alan Gayle, president of Via Nova Investment Management in Fredericksburg, Virginia. “I don't think investors should be abandoning stocks when the economy is growing and earnings are up roughly 20 percent from a year ago.”.