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Income Report Card | April 10, 2017

Posted on April 10, 2017

What to Note: The 10-year Treasury Bond bounced off a low rate of 2.34%, which remains inside the recent 2.31% and 2.62% bands.  The rate increased a few basis points, but markets did not rotate into inflationary asset classes like stocks and commodities.  We think it is important to continue to keep an eye on this interest-rate […]

Volatility | April 7, 2017

Posted on April 7, 2017

Our Observations:  Market volatility is an indicator of financial stress. Low or declining volatility environments may indicate favorable periods for equity investments, whereas rising volatility periods may favor sovereign debt and developed market currency exposure. Currently, near-term volatility (22 days) is below long run (12 months) in nearly every asset class, underscoring what has been […]

Correlation | April 6, 2017

Posted on April 6, 2017

Our Observations: The correlation figure measures how each asset return moves in relationship to the broader basket of asset returns listed on the X axis. When correlations are high or rising, it may indicate that economic movements and sentiment are driving the majority of returns, which could potentially make security selection challenging. In recent months, we […]

Momentum | April 5, 2017

Posted on April 5, 2017

Our Observations: Momentum measures the rate of acceleration, either positive or negative, in a security’s price and may indicate which markets are positioned for gains or losses. Investing based on momentum entails establishing long positions in securities with positive recent returns and short positions in those with negative recent returns. Momentum in asset classes may […]

Income Report Card | March 31, 2017

Posted on April 3, 2017

Our Observations: The 10-year Treasury ended the week exactly where is started: at 2.40%. As a result, most credit-related sectors advanced over the week, finishing with strong positive gains while Treasury and other safety assets were largely flat. Read the Report Card »

Income Report Card | March 27, 2017

Posted on March 29, 2017

Our Observations: The 10-year U.S. Treasury yield decreased over the past week from 2.47% to 2.38%. The 10-year Treasury has been trading in a range of roughly 2.31% and 2.62% which gives the benchmark rate a little bit of room to move lower but is likely near the end of the cycle. This could provide Treasury […]