high yield bonds

Weekly Update

An Overbought, Concentrated Market

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Published June 14, 2024

 

Below is a good overview of the state of the stock market from MarketWatch and Apollo.

“Twenty-nine. That’s how many new records the S&P 500 SPX has registered so far in 2024, having closed at a new peak on Thursday (though lower futures on Friday suggest it may not make 30 this session).

Hopes for interest rate cuts later this year and excitement over AI have helped propel the bull run.

And yet, there are many reasons to be wary right now, say the bears. First, an obvious short-term technical one. The 14-day relative strength index of the Nasdaq 100 NDX, whose big tech constituents have been powering the rally, has moved up to 77.5, well above the overbought threshold of 70. (more…)

Weekly Update

Areas for Concern

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November 24, 2023

 

As we parse 2024 outlooks, we offer this analysis from Schwab regarding four problem areas in the economy/markets. Here is their list of problem areas:

Commercial Real Estate – High-Yield Bonds – Small-cap Stocks – Regional Banks

(more…)

Uncategorized, Weekly Update

If History Is Our Guide, This Bear Market Is Just Getting Started

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Published April 3, 2020

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There are many stories already in this bear market. Below, we present a few that might be of interest. First, we take a look at our focus index, the Nasdaq 100 (QQQ). The line across the middle notes the price point ($195) where this index broke out back in November to begin a four month rally. That breakout ran fast and hard. We now trade below that breakout point. In fact, it served as a point of resistance (aka net selling) to halt the most recent rebound effort. (more…)

Uncategorized, Weekly Update

Yet More Signs of Market Risk-Taking

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Published December 20, 2019

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Investors continue to be willing to take on more risk. Now that the “phase one” trade deal with China appears to be completed, the UK election results are in, and the Federal Reserve projects being on hold for quite some time, investors have breathed a collective sigh of relief. (more…)