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Posts Tagged ‘low trading volume’

It Only Takes One

April 10th, 2017 by Kurt L. Smith

After four months of sideways price (yield) action in bonds, one might tend to believe nothing has changed or nothing is happening. Thankfully the municipal bond market offers us tens of thousands of unique opportunities over a similar timespan.

Ten year treasury notes doubled in yield from 1.32% to 2.64% in the second half of 2016, but for 2017 the market has traded in a narrow range. This corrective phase may already be complete or we may have more time to diddle. The important takeaway is that I believe the market for longer-term bonds will resolve into much higher yields and much lower prices. (more…)

Blessed Are Municipals

April 11th, 2016 by Kurt L. Smith

Rare is my newsletter with good things to say.  How about “it is good to be an investor in municipal bonds!”  As I wrote several months back, municipals were one of the top performing sectors last year.  Now we are going to discover how long the ride may be.

I am not recanting my position that Bonds peaked in price (bottomed in yield) way back in 2012.  I stand by my position.  But after a quick swoon in 2013, municipal bond prices have been rising and have remained quite firm (low volatility) as they have made their way back towards the highs of 2012.

Low volatility and rising prices…in this market!?  This is certainly a recipe for those not familiar with municipal bonds to get acquainted.  Municipals appear to be a bright spot, not only in the fixed income markets, but in investing in general. (more…)

High Prices Good!

December 16th, 2015 by Kurt L. Smith

One of the lasting lessons learned from the financial crisis is how much better the world seems to be when asset prices are high(er). Balance sheets are strong when prices are strong. Loans look better when collateral prices are higher. As we saw in 1999 and again in 2007, higher prices make for a wonderful investor world. (more…)

NEWS FEED

The $247 trillion global debt bomb washingtonpost.com/opinions/the-2…