Warning: Investors Prepare for “Sea Change”

[ETF Daily News]( October 23rd, 2023 SPONSORED AD [Author of Get Rich with Dividends Is Giving Away His Ultimate Dividend Package FOR FREE!]( , Including Details on His #1 Dividend Stock... the Safest 9% Dividend in the World... the Top Three "Extreme Dividend" Stocks... and Much, Much More. For Free. [Click Here to Get Marc Lichtenfeld's Ultimate Dividend Package]( [Warning: Investors Prepare for “Sea Change”]( The main theme for investors right now is how the surge in bond rates made stocks less attractive. This had the S&P 500 ([SPY]( – [Get Rating]( heading lower which compelled me to write recent commentaries about a term we should all get used to: [Rate Normalization.]( I am not the only investor fixated on this topic. Howard Marks, the famed money manager from OakTree, believes this theme has multi year effects on the investment landscape. That is a topic we need to dig into further today. Spoiler Alert: It does darken the appeal of stock investing going forward. The good news is that those aware of the Sea Change can chart a course to outperformance. And that is exactly we will discuss below in today’s Reitmeister Total Return commentary. Market Commentary The simplified version of the current investment chain reaction goes like this: Bond Rates Up > Stocks Down However, that is just the current dynamic. That is why Howard Marks has gone in depth on the topic in his latest letter to investors: [Further Thoughts on Sea Change.]( It’s a lengthy read. So let me boil it down for you by expanding on the above chain reaction: Bond Rates Up > Lower Corporate Borrowing > Slower Economic/Earnings Growth > Stocks Less Attractive > Bonds More Attractive Why are stocks less attractive? Because earnings growth is the main catalyst for stock price appreciation. Meaning that once stocks become fully valued in terms of PE…then really the only thing that makes sense to move prices higher is earnings growth. If that is muted…so too is upside potential. Further, if bond yields are higher, then investors have a very attractive, lower risk alternative to achieve decent rates of return. This dynamic has already been set into motion given the dramatic rise in rates since the spring and accelerated the past couple months. Note that stocks being less attractive does not equal unattractive. And does not mean bearish. In essence, it says that investors need to throw out the playbook from the last 40 years as interest rates drop from historically high levels in the early… Continue reading at [STOCKNEWS.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019