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Home / Business / Here is the risk stock market bulls should fear most in 2019: HSBC

Here is the risk stock market bulls should fear most in 2019: HSBC



If this not so awful week stops, the S & P 500 can be in line for a nice weekly victory, after it starts at the beginning of the month.

Thank you for everything that is fantastic at the trade front for any winnings we receive. Still look over December and there is plenty of caution. When this column's call pointed out Wednesday, one for the quiet 2017 made us almost out of 2018's battery and volatility whirl-a-gig.

Forwarned is forearmed, and our call on the day from the HSBC Strategies offers the biggest risk they face against markets next year.

1) Business margins stumble and fall. "A meaningful decline in profit margins ̵

1; perhaps driven by acceleration in wage growth – may be enough to track the growth of expectations in the US, and thus the US beef market – especially if resumed wages, so Fed pushed to tighten monetary policy further" said HSBC Global Equity Strategist Ben Laidler and team. It will also mean that businesses can be in trouble when it comes to loans.


2) Bold continues to wander. HSBC sees two more trips after one next week's meeting-March 2019 and June 2019, but the markets are heated to the idea that the central bank may need to collect these plans. Strong growth and higher inflation may mean that the Fed becomes aggressive.

This can work in two ways for shares. If the Fed responds to higher inflation as a result of stronger growth, the stock can rise, but if the tightening is a response to tax-related inflationary pressures, stocks may be affected. In this case, you choose defensive shares, "says HSBC.

3) Increasing borrowing costs for companies. "If companies were faced with the combined challenge with increased borrowing costs and potentially lower operating earnings in an economic downturn, then it's likely someone will struggle," said HSBC. Their biggest concern is the "degraded credit profile of US dollar-based investment class non-financial corporations.

4) Return on interest rate failure. It has been low in recent years, but indicating more Fed tightening and a possible start at higher rates from the European central bank next years could start to shake things up. "As a result, it seems likely that higher interest income will pass into other asset classes. An increase in equity will be linked to shares that sell. "


Volatility Wave Continues Ruling

HSBC Thrown Other Risks That Could Beat A Lot Of Assets – Increasing Climate Change, A Trade Crisis Is Determined But Can Also Trigger Closer Fed Politics), Another Eurozone Crisis, New and Unconventional ECB Policies and Surprise Reforms of Emerging Countries.

Read: A rare stretch of sales indicates that stocks may have hit the bottom

Market

S & P

SPX, + 0.38%

Dow

DJIA, + 0.45%

and Nasdaq

COMP, + 0.39%

have all opened a little bit higher.

Crude

USA: CLU8

is lower after an IEA report showed increasing OPEC production, while the dollar

DXY, + 0.22%

and gold

USA: GCU8

is stable. Look at the euro

EURUSD, -0.2815%

which the ECB meets later and pound

GBPUSD, + 0.0475%

for more Brexit developments and after PM Theresa May won his confidence vote.

Europe shares

SXXP, + 0.13%

glides while Asia shares rallied for a second day, with China shares

SHCOMP, + 1.23%

up 1.3% .

The map

So while November was a mess for stocks, investors did not stop collecting money into SPDR S & P 500 ETF

SPY, + 0.41%

which tracks the index. It shot another $ 3.73 billion for November, most flowing for any ETF this month, according to ETFGI.com. They give us our chart of the day, showing how global ETF assets continue to be forwarded:

ETFGI

Opinion: Look for these stock market sectors in 2019 instead of FAANGs and tech

Buzz [19659013] GE

GE, + 10.26%

is flying news that it will launch an independent software product company with $ 1.2 billion, and after an upgrade of J.P. Morgan.

Apple

AAPL, + 1.03%

adds $ 1 billion to a new Austin campus and plans to expand across other cities. Apple says that this is part of its plans to add 20,000 new jobs in the United States by 2023.

While US and China trade tension may be easier, conditions can cure elsewhere that another Canadian ex-diplomat may have missed in china. Some people are concerned that Canada's retail arrest may be a high-profile Huawei leader on behalf of the US Justice Department.

In Europe, the European Central Bank states that the bond purchase program will officially end this year, leaving the key figures unchanged.

UCG, + 2.39%

And after surviving the night of long knives, May in Brussels is fighting for a better Brexit deal.

First, Elliot Management came to Pernod Ricard

RI, -0.20%

Activist investors are getting ready to invade Europe. Plus, Europe's 50 most influential people in private equity.

Check out the first tweet from Iran's oil minister Bijan Zanganeh:


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