In The News – Friday, December 5th, 2014 Edition
is an interesting anomaly. High Yield Bonds and Equities seem to have parted
company when they normally correlate closely. They have parted ways before,
most recently last year, but according to this article on ten occasions since 2007 when the high yield ETF
dropped 5% in a 30 day trading period, the S&P 500 feel as well nine times
out of ten an average of 9%. It’s worth watching, but could be a function of
the fact that investors are worried about the Energy sector where High Yield
Debt has been employed.
it’s finally happened. For the first time since Ulysses S. Grant was President,
the United States isn’t the largest economy on earth. According to the IMF, China economic output this year will be
$17.6 trillion compared to $17.4 trillion for the U.S. “This will not
change anything tomorrow or next week, but it will change almost everything in
the longer term. We have lived in a world dominated by the U.S. since at least
1945 and, in many ways, since the late 19th century. And we have lived for 200
years — since the Battle of Waterloo in 1815 — in a world dominated by two
reasonably democratic, constitutional countries in Great Britain and the U.S.A.
For all their flaws, the two countries have been in the vanguard worldwide in
terms of civil liberties, democratic processes and constitutional rights.”
cover on the latest issue of The Economist. Good article.
friend sent me this link. It is
fascinating! By placing your mouse at the left of the picture and left clicking
you can move from left to right and the picture changes from 1944 to the
present. Try it.