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Credit Markets Signal Warning for a Relentless Equity Rally

(Bloomberg) -- US bond markets are signaling that equity bulls may be a little too exuberant now. Stocks are close to the most overvalued against corporate credit and Treasuries in about two decades. The earnings yield on S&P 500 shares, the inverse of the price-earnings ratio, is at its lowest level compared with Treasury yields since 2002, signaling that equities are at their most expensive relative to fixed income in decades. For company debt, the S&P 500’s earnings yield, at 3.7%, is close t

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Micron or Pony AI: Bank of America Selects the Superior AI Stock to Buy

Artificial intelligence technology has been a major driver of the bull market over the past couple of years. Technology firms, especially the ‘Magnificent 7’, have powered the S&P 500’s two consecutive years of gains exceeding 20%. And while these mega-cap firms, each valued at more than $1 trillion in market cap, have garnered more than their share of headlines and hype, they are not the only players in the field. In their coverage of the tech sector, Bank of America analysts have turned their

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Bond Market in Europe Sees More Issuers Than Ever in Single Day

(Bloomberg) -- A record number of borrowers are selling bonds in Europe on Tuesday, returning from the holidays to take advantage of spreads that are near the tightest in three years. There are 28 issuers looking to raise at least €30.4 billion ($31.7 billion), according to data compiled by Bloomberg, though that amount is likely to grow throughout the day. That’s the most borrowers ever in a single day, according to the data, which goes back a decade.Europe’s primary bond market is just getting

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European stocks hold steady after Asia rises on tariff hopes

LONDON/SINGAPORE (Reuters) -European shares held steady on Tuesday after inflation data matched expectations, while Asian shares rose as some investors hoped U.S. President-elect Donald Trump would adopt less aggressive tariffs than previously thought. Europe's continent-wide STOXX 600 index was last up 0.1%, after rising 0.95% on Monday following a news report that said Trump may consider narrower tariffs, which caused shares of automakers to rally. China's CSI 300 index gained 0.7%.

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