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Strategies & Market Trends : 50% Gains Investing

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To: KyrosL who wrote (88325)3/24/2010 3:46:46 PM
From: Keith FeralRead Replies (1) of 118717
 
Investors deserve more than 3.6% for 10 year bonds coming out of a recession. Higher rates are bullish for the dollar and banks. Mildly negative for energy and materials.

One big catalyst for bank earnings this year may be the use of accounting changes that the homebuilders used in the 4th quarter. JPM is trying to line up a $1.4 billion tax refund, and I'm sure that BAC and Citi will try to follow suit.

finance.yahoo.com

On a risk level though, the market has topped out each time Treasury yields have managed to push up to 3.8%. Is this time different? I don't really see Treasury yields falling below 3.8% for the next couple years, so I think that rising bond yields can continue to support the market for a long time.
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