Bond Rout: Time To Run Or Time To Buy?

The global bond market has been taking it on the chin lately. After reaching historic lows in many parts of the globe only a few weeks ago, bond yields have suddenly exploded higher. This sharp and sudden move has raised questions as to whether we are finally arriving at the point where the long anticipated global bond market correction is finally about to get underway. But while the moves have been big in recent weeks and investors are right to be paying close attention, another question that investors may also be well served to consider is whether it may soon be a good time to buy following the recent pullback.

Please click on the link to read more of my article on Seeking Alpha.

The Black Cloud Still Looms Large

The oil market continues to search for any signs of life. Since June 2014, oil prices have fallen by nearly 60%. And while both West Texas Intermediate and Brent crude prices are still trading above the lows from earlier in January, the trend remains definitively down. This bodes ill for capital markets in general and the high yield bond market in particular.

Please click on the link to read more of my article on Seeking Alpha.

Fires Still Burning In The Oil Patch

The massive decline in oil prices over the last several months has clogged the headlines. Investors certainly have no shortage of opinions to sift through in trying to determine how the recent events in oil might impact the economy and financial markets going forward. Such viewpoints range from those predicting widespread negative spillover effects to others celebrating the boost to the economy and the attractive investment opportunities now available across the energy sector. This can leave many investors feeling confused about what actions if any they should take in response. At times like these, it is often helpful to begin by taking the simplest approach, which is to look at what prices alone are telling us. So far, they suggest that fires are still raging across the oil sector and that more challenges may lie ahead.

Please click on the link to read more of my article on Seeking Alpha.

Has QE3 Really Come To An End?

In October, the U.S. Federal Reserve carried out its final asset purchases as part of its latest asset purchase plan designed to help stimulate economic growth. This included the purchase of $10 billion in U.S. Treasuries and $5 billion in Mortgage Backed Securities in the final month. Given that the program is now over, it would be reasonable to expect that the Fed’s balance sheet would not longer be expanding in a meaningful way. But this has not been the case in the weeks since the end of the program. As a result, it is reasonable to question whether QE3 has really come to an end.

Please click on the link to read more of my article on Seeking Alpha.

This Is How A Bear Market Starts

We are now in the sixth year of what is the third longest U.S. stock bull market in history. At this advanced bull market stage, some investors are understandably concerned about how much higher stocks can go from here. This leads to the following natural question – how will I know when the bull market has finally ended and a new bear market has gotten underway? Fortunately for those that are interested, today’s stock market is providing a live and active case study right now that is demonstrating exactly what it looks like when a bear market is just getting started.

Please click on the link to read more of my article on Seeking Alpha.

Follow

Get every new post delivered to your Inbox.

Join 7,704 other followers