The thing is, theres a much simpler explanation. During the period from early September to early November, we enjoyed a period of global stability and improving economic data, and thus there was little desire to hold dollars. Since then weve been buffeted with headllines out of Europe and Asia, and so the risk off trade is back, and dollars are back in style.Whats so hard to figure out? via CHART OF THE DAY: Time For You To Admit
The public hates stocks but loves bonds - it's a little painful right now to hold on to stocks, but the next time the public is right will be the first time! Stay in stocks. How about Accenture (ACN, $38.42 yielding 2% but going up) which will benefit from all the M&A activity that we've seen and will see. Or try drug maker Pfizer (PFE, $15.92, yielding 4.5% and just now getting back to buying back stock) which
U.S. Investors Regain Majority Holding of Treasuries – Bloomberg
Bloomberg reports this morning that for the first time since the start of the financial crisis in August 2007, U.S. investors own more Treasuries than foreign holders. And that's bad news for those savers that the US government has scared the heck out of. Banks are lending - they are taking the deposits and savings of scared to death Americans and lending to the US government so it can spend hundreds of
BERK: This helpful reminder comes from Tactita Capital by way of Advisor Perspectives. Bottomline - stocks go up in line with nominal GDP growth over time. When valuation gets ahead of GDP like it did by the end of the 90s expect the next years to be negative or low to compensate for the valuation reversion to the mean.
This week marks the one year anniversary of the stock market bottom in the great panic of 2008 - 2009. Many ordinary investors sold everything and then never got back in! They missed 67%! March 2009 We told all our clients to stay invested and BUY MORE STOCKS if they had some cash allocated in other accounts. Blood was in the streets - time to buy!
Brideway’s John Montgomery on bonds, from their recently released semi-annual report: If we turn back the hands of time to the period after the deepest recession of the last century, we may see in vivid terms what could be in store, or at least the risk that presents itself. Take a sixty-year old retiree in 1940. She has just lived through the Great Depression and is convinced that the stock market is for speculators only.
