S&P 500 FINANCIALS INDEX
| Value 202.00 | Change 0.85 | % Change 0.4% |
The MLP index continues on its winning ways, up a fraction in the 295s (not seen since early Jun 2008). Many of the prominent MLPs have more than doubled off their lows & seems like nothing can stop this advance until holders decide to cash in profits. The REIT index was down fractionally still at its highs reached 4 months ago. Junk bond funds continue strong. But the Treasury 10-year bond was off, taking its yield up 5 basis points to 3.81%. Investors are seeking risk when investing.
Enterprise Products Partners (EPD), now the largest MLP, just announced they will sell over 9.4M shares (with over-allotments), raising about $300M, to pay off debt & for general purposes. The price around $33 is almost double the low in Mar.
Enterprise Products Partners L.P. Announces Public Offering of UnitsBusiness Wire(Wed 4:15pm)
Alerian MLP Index --- 3 months
Dow Jones REIT Index --- 3 months
Cold weather in the northern hemisphere encouraged buyers for oil. Meanwhile, gold has been quietly working its way up from its lows 2 weeks ago, gaining over 5%. Commodities were also helped by a weaker dollar. Recently the Japanese ¥ has advanced from less than 89 to buy a dollar to 92+.
| CLG10.NYM | ..Crude Oil Feb 10 | ..83.19 | .. 1.42 ......(1.7%) |
| GCF10.CMX | ..Gold Jan 10 | ..1,135.90 | .. 17.80 ......(1.6%) |
GLD (ETF) --- 2 weeks
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Bill Gross, head of PIMCO, the largest bond holder in the world, said he sees a, "gradually higher yield on the 10-year Treasury note" on Bloomberg TV. He has been selling Treasury notes to buy German comparable notes for their better value. John Bogle, founder of Vanguard Group & its index funds, said he is optimistic on stocks over the next 10 years, but high interest rates & unemployment are making him cautious in today's markets. He forecasted annual returns for stocks of 7-9% (including 2% from divs). He also pointed out that he favors investing in basic ETFs (tracking S&P 500 or total stock markets) but does not like the specialized ETFs with differing investment objectives & possibly using leverage.
There are significantly different charts for market averages in Q4 below. Dow has been bumping its head against the 10½K ceiling pretty much trading sideways in the last 6 weeks. NAZ has a nice 10% advance in Q4. S&P 500 has a chart between Dow & NAZ with a meaningful bump up in the last 2 weeks. MLPs have a similar chart to NAZ only MLPs have done much better, gaining 18%. Charts for individual junk bond funds would be similar to the MLP chart but with more modest (than 18%) gains, bond prices can run just so far. Dow may not be as representative of the market as it use to be, but traditionalist will find it's lagging behind as troubling.
Dow Jones Industrials --- 3 months
Nasdaq --- 3 months
S&P 500 --- 3 months
Alerian MLP index --- 3 months
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