The bond flight today made it clear (to me at least) that investors prefer bonds. This trend will likely grow as liquidation grows - investors trying to save gains. I looking for short set-ups in a number of sectors.
Secretly, I believe the 4 yr cycle is late, not history. I think we have IT top DJI and SP5.
Not flat: Long gold, energy, currency, materials, internationals (in about that order) in my core portfolio. Oh yes, I added to bonds today too.
Best, Islander
Shift in Preference
Started by
Islander
, Jul 20 2007 05:41 PM
1 reply to this topic
#2
jawndissedi
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Posted 20 July 2007 - 08:11 PM
Smart move. As I've noted here previously, bond market sentiment reached a bearish extreme a month or so ago when that declining trendline on TNX was decisely broken. What a fakeout.Oh yes, I added to bonds today too.
Best, Islander
TYX is headed to 5% -- round yield numbers are usually irresistible for the 30-yr. It could go quite a bit further if equities get really fugly, but I think deflationary spiral in yields that Greenie is expecting is still a long shot.
Da nile is more than a river in Egypt.
