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Tag Archives: inflation

Making Sense of Bonds and Gold

It’s a contradiction—or is it? Two important groups of players in the financial markets seem to be flashing polar-opposite signals. Today, Treasury bond yields plunged to a 10-month low. (Wonderful for our zero coupons!) At the same time, gold prices surged $12 an ounce, to their highest level since early August.

Hang on to Your Feathers!

It looks as if the nasty little “correction” that began on Wall Street in early August is blowing out to a climax. Expect some sharp intraday swings over the next couple of days. When the dust settles, though, the traditional year-end rally should be ready to kick in.

Bond Signal Approaching

Anxiety is building in the bond market — a sure sign that a good buying opportunity isn’t far off.
Traders were greeted this morning with the unpleasant news that import prices shot up 2.3% in September. If that pace kept up for a whole year, we would be looking at a 30% inflation rate in foreign goods. Shivers!

THE PRESSURE IS STILL ON

It looks as if this morning’s GDP report will start the markets off on a weak note. Anything can happen later in the day, of course, but it’s clear that stocks are still feeling pressure from rising bond yields. If you’re in the leveraged ProFunds, make sure you observe the stop I gave you on Tuesday’s posting.