IGVSI Rally Continues - Profit Taking Opportunities Take the Spotlight!
The Market Cycle Investment Management model has outperformed the popular investment indices since it was first developed in 1970. It features an approach that embraces market volatility; selects securities using strict quality, diversification, and income standards; and operates under strict disciplines for asset allocation, buying securities, and profit taking.
Treasury Bonds Higher; Stocks Mixed as Economy Sputters Along
December Treasury Bonds Post Daily Reversal Bottom
After early session pressure, the December Treasury Bonds posted a daily closing price reversal bottom which may be an indication that it has run out of sellers.
Thursday’s action suggests that traders may have begun the process of squaring up short positions ahead of next week’s Federal Open Market Committee meeting.
December Treasury Bonds Reach Critical Retracement Level
Jobs Data Friendly to Treasury Bonds, Bearish for Dollar
Non-Farm Payrolls were down 95,000. The jobless rate was unchanged at 9.6%. The government lost 159,000 jobs. This number was split between Fed census workers and state workers. The private sector gained 64,000 jobs which was right in line with expectations. The bottom line is the jobs market is not keeping pace with growth in the economy.
Is there a bond bubble today? Many well known investors and portfolio managers certainly seem to think so. In fact about a month ago Jeremy Siegel came out with an article in the Wall Street Journal proclaiming a huge bond bubble was about to burst, even comparing this to the technology equity bubble of the early 2000s.
The pessimists have moved out of stocks and into safer havens. Yet, fundamentally, cash flow and dividends show stock values are attractive. The big opportunity could lie in the simple fact, fundamentals in areas such as profitability versus valuations show a disconnect in terms of perception versus reality.