Okay, the bond blow is over............well, what do I know? Finally, a decent bond recovery today. Equity on the fly, too and the VIX continues to creep lower.
Equity, U.S. bonds and various sectors
---click %change to view today's change
https://www.barchart.com/etfs-funds/etf-monitor?orderBy=percentChange&orderDir=descVIX moving lower again/still for past several sessions. The chart is 1 year and you may view when the equity market was humming and the VIX cruised along the value of 10 for quite awhile.
http://stockcharts.com/h-sc/ui?s=$VIX&p=D&yr=1&mn=0&dy=0&id=p98805840403What else could an investing gal or guy want? Don't mind all that other noise, you know; the military stuff, the government stuff or any other social unrest and jitters that might hit your list.
AS the town crier would have announced; "10 bells and all is well".
Good night.
Catch
Comments
Bonds didn’t do much today that I could see. Up a bit after getting hit hard this week. The CPI figures this morning were weaker than expected. New car sales are down. What strikes me is how close the 10-year Treasury is to the 30-year in yield. Not inverted - but darn close.
Have the gurus at T. Rowe swallowed “dumb pills”? Newly minted TMSRX (which is supposed to be a hedge fund dressed in mutual fund garb) hit the skids recently, falling 1.7% since I bought in a month ago. Or, could it be that T. Rowe is (as is often the case) a bit early to the game and knows something the rest of us don’t?
Actually, TMSRX has tracked Price’s multi-income fund RPSIX closely. RPSIX, which rarely looses money in a given year, was off 1.7% for the year as of yesterday. Got your take on VIX. Just not something I pay much attention to. However, hedge funds like to play off of it - which might explain how the guys at TMSRX got tripped up.
Perhaps I should forgo a late night post, when I awaken at 5am on the same day.
--- Gov't. issue bonds/bills and the spread among the yields. Yes, the 2 and 10 year yield is narrowing again, as well as the 10 and 30 year yield spread which closed yesterday at 15 basis points. This spread continues to slowly narrow from the past year; even though both yields are significantly higher than one year ago.
---Bonds corporate, LQD found about a +.50%, which is a strong positive reversal of the trend for the year so far. May be nothing more than a technical trade by the big kids; but I do watch these bonds in particular, as so many ($'s) have been issued over the past years to finance take over, acquisitions, etc.
---VIX = Technically speaking, the CBOE Volatility Index does not measure the same kind of volatility as most other indicators. Volatility is the level of price fluctuations that can be observed by looking at past data. Instead, the VIX looks at expectations of future volatility, also known as implied volatility. Times of greater uncertainty (more expected future volatility) result in higher VIX values, while less anxious times correspond with lower values. (From Investopedia)
>>>I watch VIX strictly for the above description of the sentiment of those involved in trading this area. I don't trade this, but mingle the indicator with other market factors.
You noted "new cars sales down"..... Reportedly, 1/3 of new car sales for 2017 were leases (counted as a new car sale). To this, I saw a tv crawl on Bloomberg that used car prices are down. Also, that the ads I see for new car leases continue to reflect lower monthly lease prices, and in many cases; there is no increase in "up front" money, or no "up front" money at all required by the customer. So, this market finds the production of vehicle units to continue; and one wonders how much pricing is being squeezed all the way down the distribution chain. A large "boatload" of vehicles continuing to come off of a 2 year lease and flooding the secondary markets with decent "used" vehicles, eh?
'Course, many folks enjoy the thought of driving a $60K SUV for "x" dollars a month; while in their real life, they could not afford such a vehicle with a traditional auto loan, even with the very low interest loan rate for those with a good credit rating. Also, auto companies pumping their ads that "they" are able to finance those with crap credit ratings for a new vehicle. The sub-prime auto loan area is probably more smelly than folks know or that is reported. NOT a pretty picture for this segment of the economy, IMHO.
Per Sonny and Cher..........."and the beat goes on".
NOTE for today. Trump's "plan" announce at 2pm today about his plan to reduce drug pricing. No scare reflected in yesterday's healthcare sector gains. Will discover today if pharma or other narrow parts of healthcare gets some type of negative price whack.
I've run my mouth enough.
Take care and be assured, that winter is almost gone in Michigan, yes?
Catch