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| 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. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
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S&P National Bond Index
|
3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Buy high-yield corporate bonds while stock markets move sideways |
FINANCIAL POST - Sept. 12, 2011 - By David Pett
First there was the Great Recession, then came the Great Reflation.
Now markets are bracing for the Great Consolidation, a period of tepid economic growth and ultimately range-bound equity markets that will require Great Patience among investors.
“The ‘big consolidation’ could be the dominant investment theme moving forward,” Chen Zhao, managing editor at BCA Research, said in a recent note to clients.
“Expected returns from stocks will be much lower than in past years, but price volatility will stay high as low GDP growth frequently provokes financial instability.”
Following the impressive rally in stocks that took place in most of 2009 and 2010, equity markets around the world have plummeted this year amid growing concerns about the global economy.
While this summer’s dramatic sell-off has been heightened by the risk of another recession hitting Europe and the U.S., it also reflects a realization among investors that economic growth in most of the developed world will be far less impressive than it was prior to the financial crisis.
“If you look at the most recent peaks on equity markets, earnings expectations were probably too high for a global economy growing this slowly,” said Avery Shenfeld, chief economist at CIBC World Markets.
Mr. Zhao believes investors needed to tone down their earnings optimism now that a low-growth deflationary environment has become more evident.
He believes corporate profits, which have easily eclipsed double-digit pace for most of the past two years, are inconsistent longer term with underlying economic growth.
“On one hand, subdued wage growth, decent productivity and corporate outsourcing tend to support profit growth,” he said. “On the other hand, slow economic growth, bad job creation, already very elevated margins and the dollar’s inability to drop significantly could dampen earnings growth.”
At this juncture, Mr. Zhao believes the critical issue for investors is to ascertain the proper equilibrium multiple for stocks in a low-growth, deflationary environment.
The S&P 500, which closed near 1,140 on Monday, trades at about 11x forward earnings at the moment.
For the complete article.
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Income Security Recommendation January 2013 Issue.
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