Bonds Hit the Skids

The stock market has had a nice rally over the last four days. The S&P 500 managed to close above its 50-day moving average on Friday. Still, I’m skeptical that this burst will last.

For one, it’s been a dramatic spike upward. That’s usually not a good sign of lasting strength. Also, it’s heavily tied to high beta stocks. The low volatility names haven’t moved that much. I’d much rather see a rally that lifts many boats.

This morning, Berkshire Hathaway said it’s buying insurance company Alleghany for $11.6 billion. That works out to $848.02 per share in cash. By the way, Alleghany has one of the coveted single-letter ticker symbols, “Y.” I wonder if anyone will go for it.

The real action lately hasn’t been in the stock market but in the bond market. Bonds are having one of their worst stretches in years. Here’s a chart of the Treasury Bonds ETF (TLT):

Posted by on March 21st, 2022 at 9:43 am


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