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Smart Investor: What's Next for Bond Yields, 40 Newly Cheap Stocks, and Tech IPOs


Published on 2024-12-28 07:41:11 - Morningstar
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  • With just a couple of days to go in 2024, the Morningstar US Market Index is on track for a second consecutive year of gaining more than 25%. The S&P 500, meanwhile, is looking at similar gains, which would mark the first time since 1997 and 1998 that the index has clocked in with back-to-back returns north of 26%.

The article from Morningstar discusses several key financial topics relevant to investors. It highlights the recent surge in bond yields, particularly the 10-year Treasury yield reaching 5%, a level not seen since 2007, which has implications for stock valuations and investor strategies. This rise in yields could signal higher borrowing costs and potentially lower stock prices due to increased competition from fixed-income investments. Additionally, the article mentions the emergence of 40 newly "cheap" stocks, suggesting opportunities for value investing as these stocks might be undervalued. It also touches on the tech sector, noting a slowdown in tech IPOs due to market conditions but anticipates a potential rebound with companies like Instacart and Klaviyo going public. The piece concludes by advising investors to consider these shifts in market dynamics when planning their investment moves, balancing between the allure of high yields and the potential for stock market gains.

Read the Full Morningstar Article at:
[ https://www.morningstar.com/markets/smart-investor-whats-next-bond-yields-40-newly-cheap-stocks-tech-ipos ]
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