S&P 500 FINANCIALS INDEX
| Value 196.31 | Change 3.86 | % Change 2.0% |
In this bullish market, the high yields are marching ahead. The Alerian MLP Index rose 3¼ to the 261s, nearing its recent 265 high. The storm in the Gulf is not bothering MLPs. The Dow Jones REIT Index is up 4½ but remains in its recent sideways trading range. Junk bond funds have nice gains after losing ground last week. Treasuries were only a little higher. The yield on the 10-year Treasury bond fell only 2 basis points to 3.49%. The VIX is down to the 23s on easing fears.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
Commodities are also having a solid up day. Oil is getting used to a new trading range where 75 has been reversed from the ceiling to the floor (heading back over 80). Gold has firmly gone thru the 1100 barrier, making it a new floor. Strength in gold is betting on an even weaker dollar & high inflation down the road.
| CLZ09.NYM | ...Crude Oil Dec 09 | ...79.18 | ... 1.75 .......(2.3%) |
| GCX09.CMX | ...Gold Nov 09 | ...1,105.80 | ... 10.70 .......(1.0%) |
The Group of 20 nations (G-20) agreed to maintain economic stimulus measures, encouraging investors to buy higher-yielding assets. Benchmark interest rates of 0.1% in Japan & as low as zero in the US make the yen & dollar favored targets for investors seeking to fund carry trades when other trading partners raise interest rates. The U.S. & Japanese currencies fell against most of their major counterparts. The chart below shows how much the dollar has fallen against a basket of foreign currencies. Accommodating & very easy policies are what stock investors like to hear, but too much of that got us into the credit mess a couple of years ago. Gold reached a another new record! For those wanting to learn more about gold, there is a button for gold on the right.
Dollar Falls to 15-Month Low as G-20 Pledge Spurs Risk Demand
Dollar Index - 1 year
McDonald's (MCD), Dow stock & Dividend Aristocrat, reported monthly sales growth edged down in Oct in the US, only the 1/3 time the monthly figures hasn't climbed in 6½ years. But that weakness was offset by stronger growth globally. MCD rose 78¢. Oct sales for stores open at least 13 months edged down 0.1% in the US, partly due to strong year-ago comparisons when sales in stores open at least one year rose 5.3% in the US & 8.2% worldwide. Global sales in stores open at least one year rose 3.3%. Results matched McDonald's forecast last month.
McDonald’s October Sales Rise 3.3% on Europe, Asia
McDonald's --- 1 year
This is an odd feeling, we are back to the bull market for stocks & gold. That's not supposed to happen!
GLD (ETF) --- 2 weeks
Dow Jones Industrials --- 2 weeks
1 comment:
Yes, gold prices are a stumper with the bull stock market. New territory here.
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