Stocks Slump as Strong Jobs Report Stokes Fears of Aggressive Fed Rate Hikes
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Treasury yields have spiked recently like before 1987's Black Monday, worrying investors about a potential market crash.
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Higher interest rates for longer could hurt portfolios even without a stock plunge. The Fed may try yield curve control to cap long-term yields.
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Investors should reduce risk now by raising cash, hedging, buying short-term bonds, favoring defensive stocks, and avoiding mega caps.
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September payrolls jumped by 336,000, beating forecasts, and unemployment stayed at 3.8%. Markets fell on the strong jobs data.
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It's the 15-year anniversary of TARP this week, which opened the floodgates for central bank asset purchases and ballooning balance sheets.