Another day, another spin...
Back in the good ol' days -- earlier this year -- bonds and stocks moved in unison. A talking-head would sooner sport a Nehru jacket than discuss competitive investment vehicles.
Two months ago, "flight to quality" explained equities hangover; one month ago, the equities rally was a result of distribution "back to equities." Now, AG has reportedly decimated the credit market -- chasing money into equities. (The foregone conclusion would be a stock market windfall.)
Okay, I'll construct inter-market spreads. But, I still want to know: what is the deal? Is this Paint Your Wagon, where gold dust falls through floor planks and into the hands of bandits?
Maybe market breadth looks terrible because bond money (traditionally, safer) is chasing "safe" equities. (By some bizarre Archimedes principal, even the most speculative stocks would benefit.) If so, stock market momentum would easily be carried into mid '99 -- a BTD paradise.
At this point, I'm inclined to buy the media rhetoric. So, I'll be watching Mr. Sew, playing dips swiftly and waiting for the "next rally."
As always, WDIK.
Alan |
