Today’s Market

This is a frustrating market. Every time stocks start to rally, they quickly run out of steam. Earlier, I mentioned how the market was stuck in a tight 2% trading range—not anymore. The S&P 500 is now below its March high. The index has fallen in five of the last six sessions. The market is up today, led by a big surge in the homebuilders. The automakers are also having a good day. General Motors is up about 4%, and Ford is up 1.7%.

What’s unusual now is that stocks and bonds are completely “delinked.” When stocks are up, bonds are down. When bonds rally, bonds lose ground. In July, the 10-year T-bond tanked. In just six weeks, long-term yields jumped 30 basis points, but stocks were doing well. But now, the yield is back below 4.2% and stocks can’t get a footing.

Posted by on August 24th, 2005 at 1:57 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.