The 10 year treasury has barely moved today and is trading right around 4.47% while none of the equity indexes are moving much (plus .2 or .3%) except the Russell 2000 which is up 2/3%. Of course the S&P500 is only 2% (+/-) from record highs so one would expect some sideways movement.
We have the consumer price index (CPI) being released tomorrow which is weighing on investors mind, BUT maybe more importantly we have a 10 year treasury auction happening tomorrow afternoon. We’ll see what buyers are thinking by the demand (or lack of it) for more government debt. This is the most serious hurdle facing us (in my mind)—we have to see serious (and successful) deficit reduction coming out of congress. I see we have some senators being hyper critical of the budget, but we have to see where it ends up and if the hawks cave.
I’m just watching today–since I bought a little yesterday I am content to watch–no hurry whatsoever. My returns on the portfolio are lagging my target, but to try to make risky moves to ‘make up lost ground’ would be a giant mistake–a fool and his money are soon parted and I don’t want to be the fool.
“we have to see serious (and successful) deficit reduction coming out of congress.” Cmon—you know that is not going to happen. The GOP tough talking Reps and Senators always cave when push comes to shove. If the Dems were in control, it would be the same. Sooner or later, probably later, the US will need to pay the piper. Who knows when that will happen?
whidbey–I can always hope!!