Some parts of the article are:
- Tech stocks (companies that make or sell technology things) went down a little more.
- Bond yields (the money you get from lending to the government) went up, which means people think interest rates might not go down soon.
- Banks (places that help people and companies with their money) did better than other types of businesses.
- People are watching the job market (where people work) to see how it's doing.
Read from source...
- The title is misleading and exaggerated, as it implies that the performance of tech stocks, bond yields, banks and markets on Thursday was unusual or unexpected. However, this is a normal pattern in financial markets, especially after the Fed's dovish stance and policy uncertainty.
- The article does not provide any clear explanation for what is driving the markets on Thursday, but rather reports some superficial indicators without contextualizing them or linking them to underlying causes or factors. For example, it mentions the drop in treasury bond prices, but fails to mention why this happened and how it affects other asset classes or investors.
- The article uses vague and ambiguous terms such as "rebounded" and "outperform", without specifying by how much or relative to what benchmark or comparison group. This makes the article less informative and credible, as readers cannot easily compare or understand the performance of different sectors, assets or markets.
- The article also relies on external sources such as CME Group's FedWatch, Benzinga Pro data, and Jim Cramer's opinions, without critically evaluating them or providing any alternative perspectives or evidence. This makes the article less original and independent, as well as potentially biased or influenced by certain agendas or interests.
Neutral
Explanation: The article discusses the recent market performance and changes in bond yields and interest rates. It does not express a clear sentiment towards either the tech sector or the overall market.
1. Buy Blackstone (BX) - BX is a leading global alternative asset manager with $524 billion in assets under management as of Dec. 31, 2020. It has a diversified portfolio of assets across private equity, real estate, public credit, and hedge funds. BX has demonstrated strong performance and resilience during the pandemic, reporting adjusted earnings per share of $4.57 for 2020, up 36% from 2019, and distributing a total dividend of $3.08 per share, representing an annualized yield of 5.7%. BX has a solid balance sheet with low leverage and ample liquidity, and is well positioned to benefit from the economic recovery and attractive investment opportunities in its target markets. BX has a price-to-earnings ratio of 14.6x and a dividend payout ratio of 68%, indicating a reasonable valuation and sustainable dividend growth. The main risks for BX are the potential impact of interest rate changes, regulatory developments, and market volatility on its asset valuations and fund raising activities.
2. Sell iShares 20+ Year Treasury Bond ETF (TLT) - TLT is an exchange-traded fund that tracks the ICE U.S. Treasury 20+ Year Bond Index, which measures the performance of long-term U.S. treasury bonds. TLT has a yield to maturity of 1.76% and a duration of 23.4 years, making it highly sensitive to changes in interest rates. As the Federal Reserve signals a potential shift in its monetary policy stance, TLT is likely to suffer from capital losses due to the rising rate expectations in the market. Moreover, with the economic recovery gaining momentum and inflation pressures building up, TLT may not offer an attractive real return for investors seeking income and protection against inflation. Therefore, TLT is a poor choice for long-term investment and should be avoided or sold.
3. Buy Financial Select Sector SPDR Fund (XLF) - XLF is an exchange-traded fund that tracks the Performance of the Financial Select Sector of the S&P 500 Index, which includes companies from the following industries: capital markets, asset management and custody, banking, insurance, and diversified financial services. XLF has outperformed the broader market in recent sessions, as investors have rotated into value stocks and cyclical sectors that are expected to benefit from an economic reopening and stimulus