|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
The Stock Market Is Wrong: Bonds Warn Of Deflation Even With QE3 |
Seeking Alpha - August 31, 2011 - By Michael A Gayed
Nothing like a little QE3 hope to cause the Dow Jones Industrial Average to rally over 800 points in seven days, is there? Markets are rallying because Helicopter Ben is going to initiate QE3 in the very near term, and that alone will push risk assets up, right? Equities are simply “pricing in” what Bernanke and Co. are going to ultimately do – print money in hopes of stimulating the ailing economy. The embedded implication of this is simple: Force inflation into the system in some way, shape or form. And let's face it, “risk-on” is just another way of saying inflation while “risk-off” is some way of saying deflation.
We are all under the impression that markets are now in risk-on mode because of renewed hope that inflation will be pushed back into markets. The S&P 500 is up over 9% in a little over a week, so we have to be out of the woods and the bear market scare is over, right? I don't buy it, and not because of my personal beliefs. I like to put a spotlight on certain inter-market relationships to see if there is a consistent message underlying market dynamics. Of most importance to me is the behavior of interest rates. I respect the message of the bond markets (relatively rational) much more than the stock market (relatively irrational).
The real issue to address here is to see if all markets believe that QE3 will spur animal spirits, put investors in risk-on mode, and increase inflation expectations. If not all markets do, then that makes the stock market's reasoning for rallying highly suspect. I can make an argument that the absolute level of yields on 10- and 30-year Treasuries being as low as they are is highly indicative of deflation and tecession. But in keeping consistent, let's take a look at the price ratio relationship of the iShares TIPS Bond ETF (TIP) relative to the iShares Treasury Bond 7-10 Year ETF (IEF). As a reminder, a rising price ratio means the numerator/TIP is outperforming (up more/down less) the denominator/IEF. The opposite is true in a downtrend.
For the complete article.
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
