Month: November 2014

The Race to 0%: Plunging Yields Across The Globe

  • Fed, Markets
  • Charlie Bilello

We are seeing history in the making in the bond market today, with an all-time low in 10-year yields in each of the following countries: Germany: 0.70% France: 0.98% Italy: 2.03% Spain: 1.86% Netherlands: 0.81% Portugal: 2.80% Switzerland: 0.31% Japan 0.41% Source: Bloomberg What do each of these countries have in common? Slow to negative […]

Is Energy In a Secular Decline?

Energy is the worst performing sector in the S&P 500 this year and has come under increasing pressure over the past few months as the price of Crude has plummeted to $75 a barrel. The underperformance this year has been significant, but the shift really started years ago, back in the middle of 2008 when […]

Utilities and Health Care. These are the top two sectors in the S&P 500 this year, which may come as a surprise to many as we’re being told that economic growth is set to accelerate. Given this defensive leadership, one would assume the financial markets and economy would be having a more difficult year in 2014. As […]

Promises of additional monetary easing measures seem to arrive on a weekly basis, providing a boost to share prices globally as investors are encouraged to take on more risk. At the same time, we’re seeing increasing signs of a global slowdown. History has taught us that the “stock market is not the economy.” We are […]

Are Junk Bonds Sending a Warning Signal?

Over the past month, we have seen a rip-roaring, v-shaped rally to new all-time highs in the large-cap U.S. equity indices. At the same time, volatility has been crushed in a move lower in the VIX Index that we have never seen before (above 30 to below 15 in the span of 2 weeks). The […]