Monthly Archives: May 2014

Equities Quietly Rallied; Bond Markets were Quiet

We’ll start this week with some market trivia – Roughly 150 of the stocks in the S&P 500 yield more than the 10-year Treasury.

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Why Did Treasury Bonds Rally So Much?

U.S. Treasuries rallied last week, pushing yields to new 2014 lows – but why did it happen?  War fears seem an unlikely explanation: gold and oil were well-behaved, and equities were flattish.U.S. economic fears couldn’t explain it – the data wasn’t … Continue reading

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Time to Reassess the Emerging Markets Landscape?

The last decade may well be remembered as the golden era for Emerging Markets (EM). These economies emerged from the crisis of the 90s and experienced a success story of restructuring and strong growth early in the millennium. Cheap labor … Continue reading

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Russia Smiles . . . Or Maybe Bares Its Teeth

 Observations on the Capital Markets – Week Ended May 9, 2014 On Thursday, Putin suggested the separatists postpone their vote (a suggestion they appear to have ignored). He also said Russia had pulled troops back from the Ukrainian order (NATO … Continue reading

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Weak GDP Growth and Falling Unemployment? Believe Neither Report

First quarter GDP rose 0.1% (annualized), which was well short of market expectations. But don’t get excited – this is a backward looking indicator. Q2 is already 2/3 over and it’s looking a lot stronger than the prior quarter and … Continue reading

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