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Tag Archives: Treasury bonds

October 2006 Issue

This month, find out why the stock market is primed for a strong, sustainable growth cycle starting sometime in the fourth quarter of this year. I’ll
show you how to make the most of the lucrative—yet in many ways “different”—bull market I see unfolding. To help you get your ducks
in a row, I’ll name my top three industry groups, with my #1 stock pick in each for potential gains of 60%-80% and more by late 2008 or early 2009.
I’ve also included a long list of ill-fated stocks and mutual funds to cut loose as quickly as possible.

September 29, 2006

Quite a quarter! Stock prices bounced back strongly this week, handing the blue chip S&P 500 index its best quarterly percentage gain since 2004. We’re very impressed with the market’s resilience here, and we think it bodes well for 2007. Still, as value-oriented investors, it’s important for us to maintain our price discipline.

Finishing Touches

Is this stock market action exciting, or what? On Tuesday’s posting, I advised you to buy index puts if the S&P 500 got up to 1294. Yesterday’s high was 1294.17. It’s hard to thread the needle much tighter than that!

Important Bounce for Bonds

Bond prices jumped today, with the longest-dated Treasuries tacking on almost a full point. While I’m not ready quite yet to call an end to the sell-off that began way back in early June, today’s action was an important step in the bottoming process.

The Fed Plays with Fire

Comments from three regional Federal Reserve presidents touched off a selling squall on Wall Street today. (The Dow fell 94 points, and the blue chip S&P 500 sustained an even bigger percentage loss.) It’s a sign that the stock market is becoming more and more worried that the central bank may tighten credit too far.

August 26, 2005

“Correction” almost complete! A month ago, we told you a pullback was coming in the stock market — and sure enough, despite the doubts we heard expressed back then, the market has spent most of August slowly backing down from its highs.

SHORT THE BONDS?

I’ve had several messages from subscribers in recent days asking whether it’s time to sell Treasury bonds short. My answer: Maybe a little later. Certainly not now.

WHAT ARE THE BONDS SAYING?

Treasury bonds put on a fireworks show again today. Prices skyrocketed as the yield on the benchmark 10-year note plunged to 3.53%, the lowest since 1958. What’s going on here? Until a few days ago, the consensus was that bond prices were rising because the Federal Reserve, at its last meeting, implied that it might drive down money market interest rates even further. Some speculators were also betting that the Fed might buy long-dated securities in an effort to keep rates low across the entire maturity spectrum.