January 7, 2019 The Sun is Shining on Stocks; Bond Prices Slip - by Lester Murray
Mid-day finds the DJIA up about 250 points after an early, and brief, foray into negative territory. Equity prices seem buoyed by the anticipation of something positive coming out of Chinese-American trade talks. So far, that's more wishful thinking than anything else as it's a little early to be celebrating. Bonds have slipped into slightly negative territory on the day, giving up the day's earlier, modest gains. Talk is circulating that bond traders are reassessing just how dovish Chairman Powell's remarks on Friday really were. That was Friday-they've just now decided to reassess?! Was Friday's bond rally an over-positive reaction? More wishful thinking? WTI is up over a dollar so far today and at a little over $49/barrel, is trying to sneak up on $50. Ten-Year @ 2.68%; Two-Year @ 2.53%.
Posted on Mon, January 7, 2019
by Lester Murray