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Correlation | July 12, 2017

Posted on July 12, 2017

Our Observations: Correlations are very low in nearly every asset class. This is a little bit surprising given the volatility of the bond market, which should be signaling other parts of the market, but that doesn’t appear to be the case. However, we think it would be smart to keep an eye out for correlations […]

Correlation | June 28, 2017

Posted on June 28, 2017

During the last week, bond correlations in shorter maturities increased as global bonds reacted to policy changes in interest rates. Many pundits predict only one more rate hike this year from the Federal Reserve so markets may experience a similar effect later this year. The correlation figure measures how each asset return moves in relationship […]

Momentum | June 27, 2017

Posted on June 27, 2017

Our Observations: Short-term momentum for stocks and bonds is close to 0 (zero) in many markets, which is consistent with a market grinding sideways. We think it is important to keep an eye on changes to short-term momentum for an indication of future direction. Momentum measures the rate of acceleration, either positive or negative, in […]

Income Report Card | June 26, 2017

Posted on June 26, 2017

Our Observations: The 10-year treasury yield ended the week at 2.15%, a 1 basis point change over the week. We see the increase in short-term rates standing out, as the scorecard’s cash proxy has nearly doubled its yield in the last year while all other yield options have experienced lower yields. At some point, we […]

Momentum | June 20, 2017

Posted on June 20, 2017

Our Observations: Commodities continue to be under pressure. The Federal Open Market Committee (FOMC) indicated in its recent announcement that inflation was expected to fall below the targeted 2%, creating deflationary pressures throughout the global market. While this may have a negative impact on commodities, it has not translated into bad news for stocks, which essentially moved […]

Income Report Card | June 19, 2017

Posted on June 19, 2017

Our Observations: The 10-year Treasury ended the week at 2.16, just 2 bps off its YTD low. Yields dropped after the Federal Open Market Committee (FOMC) announced another 0.25% increase to the benchmark rate. As part of the announcement, the FOMC indicated that it expected low levels of inflation, which dampens the expectation for future […]

Momentum | June 13, 2017

Posted on June 13, 2017

Our Observations: Stocks have taken a brief pause from their recent push this week while bonds took the lead. Short-term trends have favored bonds as the 10-year Treasury has gone from 2.42% to 2.21% in the past month. Foreign bonds have done even better as the euro has appreciated relative to the dollar. However, we […]

Income Report Card | June 12, 2017

Posted on June 12, 2017

Our Observations: The 10-year Treasury rose to 2.21% as most pundits expect the Federal Reserve t0 raise the target fed funds rate again this week. Master Limited Partnerships (MLPs) slid from an A rating to B rating driven by an increase in volatility. The diplomatic isolation of Qatar dashed hopes that Organization of the Petroleum […]