It looks like the sellers decided to give up early, allowing a rebound in stock prices. At this writing, Dow is up 93, but decliners were over advancers 3-2 & NAZ is up 33. Stocks have clearly come off their lows, but dreary conditions remain in the markets.
All yield securities have been punished badly in recent weeks because of the "flight to safety" notion. Junk bond funds must have yields near 20% which discounts the end of the world and its aftermath. MLPs have been hammered hard. Even off the lows today, it's easy to find yields of 12% on MLPs.
This rally will probably continue through day's end, but macro economic problems are not going away soon. Q3 earnings are coming, expectations are not high & guidance going forward will probably not be good.
No comments:
Post a Comment