The stock market remains volatile this week, but the fluctuations are caused less by news from the Federal Reserve and more by concerns about U.S. actions in Syria. Jeffrey Gundlach, CEO and chief investment officer of DoubleLine Capital, says investors have less tolerance for volatility than last summer and that the Fed’s actions could push the yield on 10-year Treasury notes to 3% by this year’s end. The firm growth in the U.S. economy is contributing to a rise in demand worldwide. Reuters describes evidence that advanced economies are seeing expansion, as Eurozone businesses just had their best month in over two years.
Stocks Gyrate On Syria Suspense– Not too long ago, stocks traded up or down based on the answer to one question: Will the Fed taper or not? Stocks rose when odds of the Fed cutting back on its market-friendly bond-buying program fell. Similarly, when tapering was viewed as a done deal, stocks fell. Now stocks are moving on a different question: Will the U.S., as President Obama is lobbying for, strike Syria? http://www.usatoday.com/story/money/markets/2013/09/03/markets-syria-what-to-watch/2760089/
Gundlach Believes The Yield On 10-Year Treasuries Could Go To 3.10 Percent By Year End- Jeffrey Gundlach, founder and CEO of DoubleLine Capital, believes interest rates on the 10-year Treasury note are heading to above 3%. In a recent interview, he discusses his take on the market’s response to Federal Reserve policy.
Rising Demand Adds To Evidence World Growth Is Picking Up– Led by firm U.S. growth, the outlook is gradually improving for advanced economies and even crisis-weary Europe is at last joining the recovery, the OECD said on Tuesday. It warned, however, that a slowdown in many emerging economies meant global growth would remain sluggish. http://www.reuters.com/article/2013/09/04/us-global-economy-idUSBRE9830FH20130904
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John R. Day, Bill Ennis and Stephanie Davidson.