Today the following happened:- S&P 500 rose 1.16%.- XLF (An ETF for financials)rose 2.45%. - VNQ fell 0.06%, but was down 1.29% around 11 a.m.- Pres Trump slammed the FED!- Treasury prices dropped and their rates rose.Anyone know what happened? Its another 10 days before the FED is supposed to release the minutes from their March meeting.
rates rose on the back of higher Chinese PMI - portending a better than expected economy (as predicted by the inverted yield curve), and the yield curve steepened.
Thanks coolprash. I heard the talking heads talking about the Chinese report, but didn't think that it would have such a large impact across so many asset classes in the U.S.
personally I think it might be a blip. Shouldn't be taken too seriously. Another thing to consider, maybe some enterprises have been getting Xmas 2019 orders so PMI has started to move up, this will pass and be over by September 2019. (probably a figment of my imagination)I am fully expecting a recession and the long term yields to fall.
but didn't think that it would have such a large impact The yield has been dropping for a week and they have given back a little. I would not read too much into any of this.
"personally I think it might be a blip. Shouldn't be taken too seriously."I like to know, or at least "think I know" what drives fairly big moves in the market. We have had at least six such interest rate blips in the last few years, normally a day or two move then its effect is over. Despite having sold a couple of banks this year, I am overweight financials so it was a good day for me. My biggest holding insurer LNC was up 5.47%.
I think we have yet to see the lows in treasuries, growth is slowing significantly globally. Here we are in the tenth year of a recovery, growing perhaps 1% once you strip the increased debt consumers have amassed. What's wrong with this picture?
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