Wall Street Strategies
Login:  
Password:
  remember me
Sign Up | Lost Password
Bond Dilemma

4/10/2017
By Charles Payne, CEO and Principal Analyst

I’ve lost track on when the bond market was supposed to implode, but it’s been a universal theme almost every year and has failed to materialize.   This year, however, it seemed like a done deal as the nation would be flushed with stimulus cash and the Fed would hike rates no less than three times.  It appeared to be happening, then the wheels came off healthcare reform, and investors flocked into taxable bonds eschewing domestic equities.

The week it became clear the Republican healthcare bill was in trouble, individual investors dumped $6.8 in domestic equities while buying $12.5 billion in taxable bonds.

So, now bonds are attractive again as several unknowns haunt the market.

  • Trump Economic Agenda
  • European Rejection of EU
  • British Exit Ramifications

I continue to see the recent shift into bonds as a cautionary move rather than an indictment of the economy, although the Trump administration is going to have to get real creative, and perhaps even unorthodox, to get portions of the economic agenda through.

That said, the 10-year yield is breaking below key support and that will cast a shadow over equities.

Charles Payne
Wall Street Strategies


 

Add a Comment!

Name:
Email:
Comment:
 
 
Submitted comments are subject to moderation before posting.
Charles Payne is featured on the Fox Business Network Monday-Friday at 6 PM ET on "Making Money with Charles Payne".

Charles Payne

FREE commentary in your Inbox! Click here
No credit card is needed.

The WStreet Market Commentary delivers the daily unbiased insight and guidance of Charles Payne and the Wall Street Strategies Research Desk.

The daily commentary takes a common sense look at the big picture, gives you advice on sector rotation and trends and helps you determine how news may affect your portfolio. We forecast what the future drivers of the market will be by interpreting the fundamental, technical, and behavioral aspects of the market.

From time to time, the commentary includes free stock picks and trading strategies to help you make money and maintain financial and mental balance in the stock market. The commentary is delivered twice a day, in the morning and afternoon, keeping you informed at pivotal times and frequently includes analysis of the major indices and actionable analysis of individual issues.

Take control of your future starting today. Simply click here to create your account.

Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Updated Privacy Policy | Terms of Use |
All Rights Reserved.