There are moments when the media will grab hold of a terrific sound byte and refuse to let go. For example, some blame the recent weakness on yield-oriented assets — investment grade bonds, high yield bonds, convertibles, preferreds, REITs, defensive dividend stocks — on a mythical “Great Rotation.” The popular catchphrase describes a circumstance whereby [...] [...more]
U.S. stocks (S&P 500) have packed on Olympic-sized gains through the initial eight weeks of 2013. Fed policy uncertainty aside, 6%-plus capital appreciation on low volatility is impressive by any measure.
The bulk of the run-up is attributable to industries tied to economic growth and enhancement. Sector ETFs that represent financials, industrials, technology and energy have [...] [...more]
The S&P 500 has not merely been resilient in its six consecutive weeks of gains. The celebrated U.S. stock benchmark has been unstoppable in its 8.3% unrealized run-up.
Granted, nearly everyone expects a period of mild selling activity (a.k.a. “a breather”). Indeed, history certainly suggests that unbridled enthusiasm usually gets a reality check or three. The [...] [...more]