The stock market is on alert after President Trump echoed World War II-era comments made by President Harry Truman before ordering the use of nuclear force against Japan. “North Korea best not make any more threats to the United States,” Trump told reporters at his golf resort in Bedminster, N.J., warning that Pyongyang would be “met with fire and fury like the world has never seen.” That was followed by reports that North Korea was exploring a missile strike aimed at U.S. territory Guam.
Bloomberg reports that two of the biggest money managers are cutting back on risk. Investors should pare U.S. stocks and high-yield debt while shifting to lower-risk assets, such as Treasuries and mortgage-backed securities, according to an allocation report by Pacific Investment Management Co known as Pimco.T. Rowe Price echoed that view as it cut the stock portion of its asset allocation portfolios to the lowest level since 2000. The Baltimore-based money manager said it also reduced its holdings of high-yield bonds and emerging market bonds for the same reason.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
