Tuesday, June 25, 2013

Ranting and Raving:Stocks Down,Bond Yields Up

Stocks continued their downward momentum on Monday.I see a lot of companies whose stocks seem to be in the wrong place.They want to come down,cautions CNBC's Jim Cramer.
The Fed has lost control of the bond market.Everybody has to readjust.What if the ten year Treasury goes to three?A 3% Clorox is not as good as a 3% ten year.It's one of the bond market equivalents that don't work.It's just breathtaking to watch the TNX,the Treasury Yield Index,when you don't have a bond terminal.
There's a couple of higher yielding stocks and MLPs,master limited partnerships.I'm watching Brazil and the riots.Are they still gonna stage the Olympics?You can't even make money if you bet against the Olympics.
Who is gonna say the magic word that Fed fund rates are gonna go higher?That's something we don't want to hear.I feel Fed Chairman Bernanke is boxed in the corner.He has become the world's largest bond trader.
Copper under three scares me.China does worry me.I went to see a meerkat exhibition.They were all huddled together,clearly worried about the bond market.
Whirlpool has a giant Brazilian market.This is one of those "let them eat cake" situations.They're building the Olympics and forgetting the people.I rented out one of my homes for July.I need the income because of the Brazilian market.
I want the highest quality here.The earnings coming out this week will be a good tell,the popular expert investor Jim Cramer said.
The TNX-10 Year Notes closed at 25.48 on Monday,up 0.34,or 1.35%.

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