Bad world news keeps coming, now add a double downgrade to Portugal and new conflicts in Syria. Investors dont care....that is until the drugs wear off. This morning I noticed that the spread between treasuries and Higher risk corporate bonds is narrower than usual. So, when someone does find a reason to pull out of stocks..they don't run to safety, they run to high yield bonds. Interesting and frightening if you ask me.
The good news is the economy is showing signs of growth.
We are still in a down channel and our "Head and Shoulders" failed and as I had cautioned, this put further pressure on rates. Lets hope for a close above 101-60 and closure of the gap...this could paint a new bottom for us.
Have a great week!
0 comments:
Post a Comment