Producer Price Index (PPI)

CAUTIOUS OPTIMISM FOR THE MOMENT

Stocks opened modestly higher this morning, edging closer to April highs. The Dow is currently up 58 pts and the SPX is flat. Banks, retailers, semiconductors and energy are all up about .5% in early trading. On the other hand, utilities, industrials and healthcare are down. VIX July futures are trading around 17, suggesting traders don’t expect a near-term volatility spike. Expected Treasury bond market volatility has collapsed this month as well. Commodities are mostly higher today, save gold. WTI crude oil bounced back to $53.50/barrel after bottoming around $51.70 a week ago. The bond market is mixed today. Treasuries are selling off a bit after a monster 6-week run. The 10-year Treasury yield notched up to 2.16%. Corporates are faring better in early trading, with the SPDR High Yield Bond ETF (JNK) up about .3%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

WHERE TO NEXT?

Stocks opened slightly lower this morning. The Dow is currently down 50 points and the SPX is down .1%. Financials (+.3%) and industrials (+.5%) are bouncing back from yesterday’s declines. On the other hand, healthcare, energy and real estate sectors are in the red. WTI crude oil fell back to $63.50/barrel in early trading. Most other commodities are down as well, partly due to a strengthening US dollar. Bonds are also trading lower as yields tick higher. The 10-year Treasury yield bounced back up to 2.49%. Only junk bonds are holding flat.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

ECONOMIC DATA TO THE RESCUE

Stocks surged at the open this morning on better than expected economic data. The Dow is currently up 187 pts and the SPX is up .9%. Tech and healthcare sectors are leading the way, up over 1% in early trading. Banks, transports and biotechs are particularly strong. The VIX Index sank back toward 13.3, indicating waning investor fears. So far, the trading session can be characterized as broadly risk-on. Commodities are trading mostly higher. The Bloomberg Commodity Index is up .5% today, and 6% so far on the year. Crude oil rose to nearly $58/barrel, the highest level since November. Bonds are mostly selling off, with the exception of high-yield (or junk). After dipping to a 2+ month low, the 10-year Treasury yield ticked up to 2.62% today. Since the stock market bottomed on Christmas Eve, the 10-year yield is up only 7 basis points (or .07%). Typically, a huge run-up in stocks is accompanied by a sharp rise in yields. After all, better prospects for stocks usually causes investors to sell bonds. Not this time, and it’s mostly due to the Federal Reserve’s abrupt pause on monetary tightening.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

DON'T BE MISLEAD BY NEWS HEADLINES ON THE ECONOMY

The major stock market averages opened lower today on the some disappointing retail sales data (see below). The Dow is down 107 points and the SPX is down .2%. The consumer staples sector is down over 1% after a weak earnings report from Coca Cola (KO). Financials are down over 1%, and industrials are down .6%. This could be the consolidation we’ve been expecting after a sharp rally in January. Commodities are mixed in early trading. WTI crude oil is unchanged around $54/barrel. Bonds are modestly higher in price, lower in yield. Longer-term Treasury notes—as measured by iShares 20+ Year Treasury Bond ETF (TLT)—are up about .5% today. TLT is flat on the year, whereas corporate bond ETFs are mostly higher so far in 2019. As you might expect on a day when stock prices are falling, junk bonds are also weak.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

December 11, 2018

December 11, 2018

Stocks rose at the open after a report suggesting progress in negotiating some sort of de-escalation of the trade war. The Dow is currently up 37 pts and the SPX is up .45%. The best performing groups in early trading are semiconductors, biotechs and retailers. The European markets closed up about 1.6% and most of Asia was up overnight. The dollar is stronger yet again, but WTI crude oil is up around $51.60/barrel. Bonds are trading modestly higher again. For the first time in a while we’re seeing a little rally in junk bonds. In Treasuries, we’re seeing short and long yields continue to converge. That is, you’re not picking up much additional yield for investing in longer-dated notes. The 5-year and 10-year Treasury yields are sitting at 2.71% and 2.85%, respectively. So yield curve concerns are front and center.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 12, 2018

Stocks opened mixed (Dow +71 pts; SPX -.14%). Telecoms and consumer staples are leading the way, up more than 1%. Tech and financial sectors are lagging. A little optimism just crept in with this headline: “US Proposing New Trade Talks with China in the Near Future.” European stock markets will close up modestly but Asia was broadly negative overnight. The dollar is a bit weaker today against a basket of foreign currencies, so commodities are getting some life. Irion ore is up nearly 2% today, and WTI crude oil is up 2.8% to trade above $71/barrel, the highest in a month. Bonds are bouncing back a bit after yesterday’s beating. The 5-year and 10-year Treasury yields are hovering around 2.86% and 2.96%, respectively. That’s not much of a gap between the two, meaning that the yield curve is still very flat. The difference between the 2-year and 10-year yields is only about .22%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

August 9, 2018

August 9, 2018

The major stock market averages opened mixed this morning (Dow -30 pts; SPX flat). It’s still a trader’s market with lots of back-and-forth but no trend. But now we’re in August and there’s no trade volume to speak of. So in some respects the day-to-day commentary doesn’t matter much. Today’s trade action—defensives leading; cyclicals mostly lagging; foreign markets lower—is exactly the opposite of what we saw earlier this week. The VIX Index—which attempts to measure investor fear—is down around 10.8. The dollar is appreciating in value against a basket of foreign currencies, and is now up 3.5% on the year. WTI crude oil is up modestly to trade around $67.10/barrel. Bonds are trading slightly higher today. The 5-year and 10-year Treasury yields are back down around 2.81% and 2.94%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

July 11, 2018

Stocks sank at the open this morning as the Trump Administration proposed an additional 10% tariff on $200bil of imported Chinese goods. The Dow is currently down 157 pts and the SPX is down .6%. Semiconductors are down more than 2% in early trading. The worst performing sectors are energy, materials and industrials—all down over 1%. Only utilities are in the green. European stock markets are poised to close down over 1% and Asia was down over 1% last night. Most commodities are also trading lower. WTI crude oil is back down to $72.60/barrel. Bonds are mostly unchanged today. The 5-year and 10-year Treasury note yields are currently at 2.75% and 2.85%, respectively. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

June 13, 2018

Stocks opened modestly higher (Dow +12 pts; SPX +.1%). Telecoms are down over 3% in early trading as a result of yesterday’s court decision on AT&T (sell below). That’s a one-time hit. But retailers, semiconductors and healthcare stocks are in the green. The VIX Index continues to slide toward 12 and VIX July futures are down around 13.7. It’s safe to say the recent stock market correction has been resolved even though we’re not yet back to all-time highs. Commodities are mostly higher today (gold, copper, iron ore, oil). WTI crude oil is hovering around 66.50/barrel. Bonds are ever so slightly higher on the day. The 5-year and 10-year Treasury yields are hovering around 2.81% and 2.95%, respectively. The Federal Reserve’s monthly policy meeting will wrap up today, however, so you can expect some interest rate volatility.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

April 10, 2018

Stocks gapped up at the open as trade tensions eased (see below). The Dow is currently up 525 pts and the SPX is up 1.8%. Materials, energy and tech sectors are all up over 2% in early trading. The VIX Index is back down to 20.7. European markets are up about .7% and Asia was up at least that much overnight. Oil, gas and metals are trading higher as well. WTI crude oil is back up to $65.20/barrel. Copper and iron ore are up well over 1%. Bonds are not surprisingly down in price. The 5-year and 10-year Treasury note yields ticked up to 2.63% and 2.80%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

February 15,2018

Stocks opened higher this morning. The Dow and SPX are currently 74 pts and .3%, respectively. Stocks have been in recovery mode for the last several days, but we’re still about 5.5% below late January highs. The VIX Index has receded back to 20 and VIX March futures are trading around 17.8. Commodities are mixed today. WTI crude oil is down a bit, still trading around $60.60/barrel. Bonds are trading modestly higher today. Both investment-grade corporates and junk are in the green after a rough start for the year. The 5-year and 10-year Treasury yields are hovering around 2.63% and 2.89%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

January 11, 2018

Stocks gapped up at the open (Dow +150 pts; SPX +.5%). Energy stocks are surging ahead 2.2% in early trading, with industrials, consumer discretionary and materials up about 1%. On the other hand, real estate & utilities are down. And of course, this is the recent trend, driven by rising interest rates and improving growth expectations. The dollar is weaker today and commodities are up a bit. WTI crude oil is up the most, 1.6%, to trade around $64.58/barrel. Again, don’t miss the fact that oil has broken out to the upside. Bonds, which have been very shaky, are holding steady today. The 5-year Treasury yield is hovering around 2.33% and the 10-year Treasury yield is at 2.55%. The next level of significant resistance is 2.63%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

December 12, 2017

Stocks surged at the open (Dow +129 pts; SPX +.28%). Believe it or not, telecoms are leading the way (+1.8%). Banks and pharmaceuticals are also up over .8%. On the other hand, the utilities sectors is down 1% in early trading. European markets are poised to close modestly higher. The VIX Index is back up to 9.5. WTI crude oil is down .8% to $57.48/barrel (still right around 2+year highs). Bonds are selling off this morning and yields are moving up after some higher than expected inflation data. The 5-year Treasury yield is up around 2.18%, the highest since April 2011. The 10-year yield is also picking up to trade around 2.42%. The next resistance level is 2.57%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

October 12, 2017

The major stock market averages gapped down at the open but quickly turned around. The Dow and SPX are currently flat. Just like yesterday’s session, defensive and interest rate sensitive sectors are leading. The only exception is telecom, down 2%. I get the sense that the stock market needs to rest and investors need to settle in and digest third quarter earnings announcements before acting with any conviction. Oil prices sank this morning; WTI crude is down 1.7% to trade around $50.80/barrel. The bond market is slightly higher as yields edge lower. The 5-year and 10-year Treasury yields are hovering around 1.94% and 2.34%, respectively. From a technical analysis perspective, the 5-year yield hasn’t been able to move above 1.96% since late March, so that’s the key resistance level to watch. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 18, 2017

Stocks opened higher this morning ( Dow +82 pts; SPX +.25%). Gains are broadbased, led by semiconductors, banks, and industrials. Only real estate and utilities are in the red. This is now officially the second-longest stock market rally in US history. The S&P 500 Index is up about 270% since March 2009 without a major correction (that is, more than 20% decline). Commodities are mixed in early trading. Oil is down 1% to trade around $49.30/barrel. Gold is down 1% today but has risen about 13% this year. Bonds are selling off as yields tick higher. The 5-year Treasury yield spiked to 1.83%. The 10-year Treasury yield is up to 2.23%. Remember, the 10-year was just over 2% a week ago, so this is a big move in rates. Last week’s Consumer Price Index (CPI) report suggested inflation is rising. And by the way, wholesale inflation is also picking up a bit. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

August 10, 2017

Stocks opened lower this morning (Dow -101 pts; SPX -.9%). All eleven major market sectors are down, led by consumer discretion, financials & tech (down more than 1%). The spot VIX Index spiked to 14 this morning and VIX September futures rose to 14.1. So volatility expectations for the near-term are rising, but the VIX isn’t predicting any panic, either. The dollar is a bit weaker today and commodities are higher. That’s what you would expect with geopolitical tensions. WTI crude oil is, however, trading flat around $49.50/barrel. Bonds are higher in early trading, owing to continued North Korea tensions as well as a weaker than expected inflation report (see below). The 5- and 10-year Treasury yields ticked down to 1.79% and 2.22%, respectively.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

July 13, 2017

Stocks opened slightly higher today. The Dow is current up 18 pts and the SPX is up .1%. Retailers, banks, and some tech stocks are trading modestly higher, whereas telecoms, biotechs and gold miners are lower. The VIX Index is still hovering around 10. Most commodities are lower, although WTI crude oil is up about 1% to trade around $46.10/barrel. That’s great news for the stock market. Bonds are selling off again today as yields resume their slow march higher. The 10-year Treasury yield ticked up to 2.35% and I’m guessing the 10-year will soon test near-term resistance at 2.42%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

May 11, 2017

Stocks opened lower this morning (Dow -123 pts; SPX -.6%). Ten of eleven sectors are in the red, led by real estate, materials and consumer discretionary sectors. It does look like a pretty typical risk-off day. Small-caps, retailers, biotechs and transports are all down at least .6%. Gold miners are up over 2% and energy stocks are about flat. The VIX Index is trading back up toward 11. Believe it or not, oil prices continue to recover. WTI crude oil is trading just shy of $48/barrel this morning. The Bloomberg Commodity Index is up .3% today but still down 5% on the year. Bonds are trading slightly higher. The 5-year Treasury yield ticked down to 1.92% and the 10-year is trading at 2.40%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

April 13, 2017

Stocks gapped down at the open but quickly recovered. The Dow and SPX are currently flat. Financials and tech are the best-performing sectors, up .3% to .5% in early trading. Biotechs are also up nicely. On the other hand, energy, materials and utilities stocks are in the red. The VIX Index is down today to 15.5. The dollar is a bit stronger today—and by the way, President Trump said yesterday he favors a weaker dollar to strengthen our global trade position. Anyway, oil prices continue to rebound and WTI crude is currently at $53.30/barrel. So it’s strange that most oil stocks (Chevron, Schlumberger, EOG Resources) are down on the day. Most other commodities are also higher, and I’ll point out that increased geopolitical tension has driven gold up 11% so far this year. Bonds are down a bit today as yields tick higher. The 5- and 10-year Treasury yields are at 1.78% and 2.25%, respectively. The next support level for the 10-year is at 2.23%.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

March 14, 2017

Stocks opened lower again this morning (Dow -65 pts; SPX -.5%). Industrials (-.9%) and energy (-1.8%) sectors are down the most in early trading. Only the utilities sector is managing a slight gain. The VIX Index rose sharply to 12.5, but still suggests a very low level of investor fear. European markets are poised to close down about .5% today. The dollar is up modestly and most commodities are lower. WTI crude oil is down 2% to trade around $47.40/barrel. Bloomberg reports some evidence that OPEC countries are not, after all, strictly adhering to oil production quotas. Bonds are slightly higher in price as yields edge lower. The 5-year Treasury yield isn’t moving much; hovering around 2.12%. The 10-year yield ticked down to 2.60%. Yesterday, the 10-year closed at its highest yield since September 2014. 


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.