Friday, December 30, 2011

Treasuries at 1.88% - Stocks Remain Near 3 Month Highs

Frankly, I don't think this can last much longer (but I could definitely be wrong), with treasury yields indicating anticipated recessionary levels (although with help from the Fed and currency flight from Europe) and stocks remaining elevated. A big problem with such heavy Fed intervention is that it distorts what the markets are indicating.

Do we listen to the bond market, or the stock market? If you put a gun to my head, I'd say listen to the bond market. Of course, the rational thing to do is probably to simply stay out of the market entirely...sometimes the most profitable trading path is to take a vacation.

Sp_dec_30_2011
Tnx_dec_30_2011

Posted via email from htlkirkland's posterous

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