Nearly 12 years of ultra-easy, unconventional monetary policy in Japan have led to some of the lowest yielding bonds in the world. Specifically, the Bank of Japan (BOJ) had hoped that — by printing yen — its currency would lose value such that export demand would increase. Moreover, by simultaneously using the new-found yen to [...] [...more]
The S&P 500 is above 1500. CBOE S&P 500 Volatility (VIX) is sitting near 15-year lows. And 88% of iShares S&P 100 (OEF) component stocks are above respective 200-day moving averages.
Normally, you might hear more discussion about complacency and/or an imminent sell-off. Instead, you’re hearing more about the “Great Rotation” out of bonds and into [...] [...more]