1 week ago
Allspring’s Miletti Says Jackson Hole Outweighs Nvidia Risk
Ann Miletti thinks investors should pay close attention to the Jackson Hole economic meeting.
She believes it could create more uncertainty than Nvidia’s earnings report.
The meeting will include Federal Reserve Chairman Kevin Warsh.
Investors are watching to see what he says about inflation and interest rates.
Borrowing money has become more expensive for companies.
Long-term government bond yields also rose sharply this week.
Miletti thinks a small stock-market decline could help markets become steadier.
She prefers healthcare and small industrial companies because she sees potential in those areas.
Ann Miletti of Allspring Global Investments said Jackson Hole may pose more market uncertainty than Nvidia’s upcoming earnings.
The Federal Reserve Bank of Kansas City symposium is scheduled for Aug. 28 and will be headlined by Fed Chairman Kevin Warsh.
Corporate borrowing costs have risen from below 5% at the start of the year to above 5.5%, Miletti said.
Thirty-year Treasury yields topped 5.3% this week before Treasury Secretary Scott Bessent doubled a planned debt buyback to $4 billion.
Miletti favors healthcare and small-cap industrial stocks and would welcome a further market correction to improve stability.
- Who
- Ann Miletti, Allspring Global Investments’ head of equity investments, discussed the risks facing investors.
- What
- Miletti said the Jackson Hole economic symposium may matter more to markets than Nvidia’s quarterly earnings.
- Where
- The symposium will be held in Jackson Hole and hosted by the Federal Reserve Bank of Kansas City.
- When
- The symposium is scheduled for Aug. 28, two days after Nvidia’s quarterly results; Miletti made the comments in a Friday Bloomberg Television interview.
- Why
- Miletti cited uncertainty over inflation, Federal Reserve policy, rising Treasury yields and higher corporate borrowing costs.
Key facts
- Speaker
- Ann Miletti, Allspring Global Investments’ head of equity investments and chief diversity officer
- Market events
- Jackson Hole symposium and Nvidia quarterly earnings are both scheduled for the following week
- Symposium date
- Aug. 28
- Corporate borrowing costs
- Above 5.5%, compared with below 5% at the start of the year
- Thirty-year Treasury yield
- Rose above 5.3% during the week
- Debt buyback
- Treasury Secretary Scott Bessent doubled a planned buyback to $4 billion
- Preferred sectors
- Healthcare and small-cap industrials
Quotes
Ann Miletti
Head of equity investments and chief diversity officer at Allspring Global Investments
“The thing that we try to stay focused on with all the craziness going on is what you can control. Looking at companies from a bottom-up perspective, really understanding what companies have the balance sheet and the flexibility to kind of get through any environment — that’s really where we’re focused, and that’s what we have control of.”
livemint.com
“it’s the quickness of the move, the sharpness of the move that can make a difference”
livemint.com
Sources
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