The Week Ahead: What's An Investor To Do Now? |
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July 15, 2013 |
July 2013 Bond Updates
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The stock market has been on a tear since the June 24 lows as last week?s gains surprised even the most bullish analysts. The S&P 500 gained 3% for the week and over 6% since the June lows.
The comments last week by Fed Chairman Ben Bernanke fueled a new round of optimism as we entered earnings season. He appears to have silenced concerns that the Fed would cut back on its stimulus. It has been a global affair as the world stock markets are on track to have their best weekly gain in eight months.
The strong earnings from both JPMorgan Chase (JPM) and Wells Fargo (WFC) Friday were a pleasant surprise as heading into earning?s season the consensus estimates was for them to be a fraction lower than the 1st quarter.
Therefore, a further pullback in yields is still likely this summer but that should be followed by another rally in yields and a further drop in bond prices. This raises the question of what percentage you should have in bonds and what percentage in stocks?
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View more at: http://www.forbes.com/sites/tomaspray/2013/07/12/the-week-ahead-whats-an-investor-tto-do-now/
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