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The Closing Bell: U.S. Stocks Jump As Investors Look To Fed On Rates
FYI: U.S. stocks rallied as investors weighed the likelihood that the Federal Reserve will continue to emphasize low interest rates coming out of its policy-setting meeting Wednesday.
Yet, yields on all sorts of bonds keep grinding higher as they have since the beginning of the month. Good news, bad news, it doesn't seem to matter. Tomorrow's Fed speak will be awaited with bated breath. Is it time for floating rate/bank loans funds to shine?
Mike, was looking the other night at what's available at Scottrade among the top funds in that category. Ever since its recent inception, LSFYX has pretty much led the pack here. I've even been in that one once or twice so if push comes to shove and there is no place to hide in Bondland may hang out there. Then again, (and might post on this tomorrow) I've been looking at the relation of Fed funds to money market funds rates. There seems to be a consensus that Fed funds will begin a gradual, albeit sustained rise to the 3.25 to 3.75 range by the end of 2016. A lot of seniors, including me, would jump for joy at what that would to money market fund rates. Give me 2% to 3%+ in a money market fund and......
Thomas, not really. Just see where price action takes me. I lightened up form 100% to 79% there just in case but may put some of that back to work. Some of the junk munis ala ABTYX are right at YTD highs with the others are but a few pennies off.
I see you read that column intraday too. Part of the rally this year was because of a shortage. I guess we will see if the increased supply leads to the first down month this year. Again, have my exit point in place if price begins to recede from here.
Comments
http://blogs.barrons.com/incomeinvesting/2014/09/18/bloomberg-bond-glut-could-derail-muni-rally/