Tag Archives: S&P 500

Bonds Will Need to Tread Lightly With Domestic And Global Issues

Last week saw the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index close 1 basis point tighter than the 2.61% that started its week.  Thursday was the only day in which the yield moved significantly as yields tightened by 5 basis points in reaction to the weaker than expected Retail Sales release.  Read more […]

Is 3% The New Black?

As with each summer’s fashion a new color of dress becomes the “new black”.  Pink, green, orange, you make the choice.  In regard to the bond markets the question could be is 3% the new black?  Bill Gross seems to think so, he is calling for economic growth and yields to remain slow and low, Read more […]

Weighted earnings: they don’t add up… and you may get burned

This post looks at why index earnings are derived by summing earnings of index constituents without first weighting the earnings by index weight (cap-weight or otherwise). While earnings are probably the most widely followed fundamental item, this explanation is applicable to a data point of one’s choice – operating earnings, cash flow, etc. An easy Read more […]

Where’s all the volatility gone?

Last month, as in many this year, the majority of developed markets eked out respectable gains. The S&P 500® closed May at a new high, as did the S&P Global 1200 index of worldwide large cap equities. The S&P Europe 350 nudged up to levels not seen since 2007. All would appear to be going Read more […]

U.S. Investment Grade Corporates Are Performing Well, Does A Euro Rate Cut Follow The Recent Dip?

The month of May closed on a high note for bonds as the drop in yields saw the S&P/BGCantor Current 10 Year U.S. Treasury Index closed at a yield of 2.47%.  Treasuries as measured by the S&P/BGCantor U.S. Treasury Bond Index returned 0.7% for the month and 2.12% year-to-date. As of today, the yield on Read more […]

Today’s Economic Indicators not moving the dial on yields.

The yield on the S&P/BGCantor Current 10 Year U.S. Treasury Index since its step down on May 13th as a result of Retail Sales has remained in a range of 2.48% to 2.58%.  There are a number of economic releases scheduled to follow the U.S. Memorial Day Holiday.  Today’s reporting of Durable Goods Orders (0.8% versus Read more […]

Market Reflects Negative Outlook for Homebuilding In 2014

The U.S. Department of Commerce released data last Friday showing that housing starts in April were up 26.4% from April of last year and 13.2% since March. In a vacuum, you would expect that the market would look favorably on the homebuilder’s market when the amount of homes being built is increasing. The home building Read more […]

Lower Expectations Meant Lower Rates, And A Continued Search for Yield

Investor’s search for yield continued at the very start of last week’s heavy economic calendar.  The Retail Sales numbers continued the trend of lower yields as the number released (0.1%) was weaker than the 0.4% surveyed.  The news started a process of investor reassessment of economic growth expectations not only domestically but globally. Year-to-date the Read more […]

EU Elections – More important than you think?

The coming week will provide Europeans with a chance to vote in the 2014 EU parliament elections. Nationally and internationally, the contest is viewed as somewhat moot; the majority across the EU will most likely not even vote. But whilst voters in the EU elections are not voting for members of the ECB or its president Mario Draghi, Read more […]

Don’t Put All Your Eggs In One Basket

It’s a little late for an Easter post but this saying is about one of the key investment principles, diversification.  Simply put, diversification happens when assets inside your portfolio move in opposite directions. The investment measure of diversification is correlation and it can range from -1.0 to +1.0. If correlation is -1.0 between two assets, Read more […]