Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
Despite Kudlow's expectations, China said on Saturday that it strongly opposes Trump's decision to levy additional tariffs on $550 billion worth of Chinese goods, and warned...Politicsread more
President Donald Trump said Sunday he was not happy after North Korea launched short-range ballistic missiles over the weekend.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Bank of America Merrill Lynch strategists are taking a more cautious stance on U.S. stocks because of slowing earnings growth and high valuations, and they say investors would be better off with more cash holdings.
The firm's strategists recommended investors in its moderate portfolio shift 2 percent from stocks into cash. While not a big reallocation, it is telling in that the strategists see U.S. equities as less attractive, and that cash is a better alternative than the bond market.
"U.S. equity valuations continue to climb and do not look as attractive as they have in the past few years. Further, muted economic growth, a stronger dollar and lower oil prices contribute to expectations for slower earnings growth," the BofAML analysts wrote.
After the shift, investors with a moderate positioning would have 64 percent in stocks, 30 percent in bonds and six percent in cash.
"We still view intermediate-term maturities as the sweet spot in the bond market, but there is not a good case for adding more exposure now. The reward for extending maturity does not look as attractive as it has in the recent past because the yield curve has flattened considerably," they wrote.
Bank of America's U.S. equity strategist Savita Subramanian noted the valuation of the S&P 500 appears elevated relative to its own historical levels and versus other asset classes, with the exception of bonds. For instance, the S&P 500's trailing P/E of 17.7 is 11 percent above the average going back to 1960.
The strategists note the S&P is only 4.5 percent away from their year-end target of 2200. "And the market has not experienced a correction in excess of 10 percent since June 2012...It seems prudent to marginally reduce exposure to stocks at this time," they wrote.