S&P 500 FINANCIALS INDEX
| Value 192.11 | Change -1.06 | % Change -0.5% |
The MLP index slipped pennies in the 268s, still in record high territory for 2009. The REIT index is up a fraction as the turmoil brought about by the stronger dollar is working in its favor. Junk bond funds were flattish but demand for Treasuries was strong. The yield on the 10-year Treasury bond dropped a big 8 basis points to 3.37%. The yield has been bouncing a lot in the last 2 weeks.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index - 2 weeks
The stronger dollar is also hurting commodities. Oil is down to 73, significantly below the 75 floor that has held recently. Gold after a recovery yesterday is lower again. Its longer term fundamentals remain bullish but there are rocks ahead for the short term. These volatile times represent a good opportunity to learn more about commodities, especially gold.
| CLF10.NYM | ...Crude Oil Jan 10 | ...73.00 | ... 0.93 .......(1.3%) |
| GCZ09.CMX | ...Gold Dec 09 | ...1,146.30 | ... 17.10 .......(1.5%) |
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International developments are taking on a growing importance. Asian markets are getting nervous about a stronger dollar. Fitch Ratings cut Greece one step to BBB+. German industrial production unexpectedly dropped. Dubai World’s Nakheel PJSC lost $3.6B. In addition Moody’s Investors Service said deteriorating public finances in the US & UK may “test the AAA boundaries.” These stories are bringing a lot of anxiety. However both the Dow & gold are near yearly highs (for gold it's record highs). The president is making a speech shortly announcing plans to help stimulate the economy. Maybe that will bring back buyers.
Dow Jones Industrials --- 2 weeks
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