Tag Archives: bonds

Stock Market is Rallying But Yields Remain Low

Posted on April 30, 2013 by Michael Harris

Anyone who was expecting bond yields to rise while stocks are moving up is now surprised. Stocks are rallying but bond yields have remained stable at low levels. On top of this, the correlation between stocks and bonds has been … Continue reading →

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Bond Market Short Squeeze

Posted on April 6, 2013 by Michael Harris

I would really call it a massacre. Bond shorts were expecting an easy profit earlier this year but that turned into a devastating loss. I have mentioned the main reasons for this failure several times in other articles and they … Continue reading →

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Bond Bears Are Ready to Quit

Posted on April 5, 2013 by Michael Harris

Despite the numerous calls at the beginning of this year for a bond bear market by analysts relying on either fundamental or technical wishful thinking, bond yields are dropping in an environment of rising stocks. This is the worst of all possible worlds for … Continue reading →

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Anti-Correlation Between Stocks and Bonds is Still High

Posted on April 1, 2013 by Michael Harris

The 12o-day rolling correlation between stocks and bonds made a low of -0.81 during February of 2012 and since then its has risen to slightly higher levels around -0.66. However, the correlation is still low and despite the correction due to a rise … Continue reading →

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Naive Bond Bears Are Getting Another Lesson

Posted on March 28, 2013 by Michael Harris

Bond bears and especially naive technical analysts who think that they can make money out of bonds by just looking at charts and applying methods of analysis established for the stock market 80 years ago are getting another lesson. Only when … Continue reading →

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Bonds Rally But Any Upside May Be limited

Posted on March 20, 2013 by Michael Harris

Bond yields retreated from their highs yesterday for the third consecutive day due to banking problems in a small EU nation. The 10-year yield fell from a high of 2.09% two weeks ago to close at 1.91% yesterday but any downside … Continue reading →

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A Replay of the 2009 Decline in the Bond Market?

Posted on January 4, 2013 by Michael Harris

The recent bond market selloff that started in the last day of 2012 has resulted in a 4.35% decline in the price of TLT in just three trading days. This is reminiscent of the 2009 bond market decline that marked the … Continue reading →

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Bond Bear Market Forecasts May Be Premature

Posted on January 3, 2013 by Michael Harris

As long as unemployment remains high and machines are replacing humans even in the service sector (read this piece by Josh Brown ) the probability is still high that the spike in yields is just due to the anti-correlation between stocks and bonds … Continue reading →

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Buy Bonds or Gold or Give the Money to Charity?

Posted on December 20, 2012 by Michael Harris

Those selling stocks and buying bonds or gold at this point may want to consider giving at least part of the money to charity instead of handing it to the market. Buying some gold for protection is fine but selling high quality stocks at this … Continue reading →

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Bond Bears Are Ready to Give Up

Posted on November 27, 2012 by Michael Harris

This probably means that a bond bear market is coming closer because even big names in the investment industry seem to have given up and are adding to their bond portfolios. However, a rapid rise in yields will not affect pension … Continue reading →

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