Loading ...Yesterday the Dow, Nasdaq and S&P 500 (regaining its 100-day moving average (1640/1641) all ended the day green. War with Syria appears to be off the table due to extremely high public and international opposition. However, our leaders are trying their best to convince the nation that a conflict with Syria is an obligation. As if…
We are disappointed with our leaders because they forgot something very cherished to a democracy. The politicians are there to represent the desires of the people, NOT the other way around. They represent us! Never let them forget that we are the boss. The leaders should not be convincing us of anything, that’s not what they are there for. Just the mere action of Obama having to “sell” the war to the people should raise a red flag in their little brains.
Getting back to markets, now that the economic recovery is gaining traction, treasuries are feeling the pressure. The benchmark 10-yr yield ended higher by 5 basis points at 2.894%. Even more impressive was the move in the 2-yr yield, which gained four basis points to end at 0.462% (highest level since June 2011).
Today is going to be an exciting day. We already learned that Global QE in ongoing when Japan, Europe, and Britain all have left their respective rates unchanged. This is the type of environment where betting against the market is hazardous to your health (and wealth). The highlight today is going to be watching how Obama performs at the G-20 meeting in St. Petersburg. Putin is not going to be welcoming Obama with open arms, but at least Obama is allowed to attend (unlike John Swiftboat Kerry). In addition, Brazil expects (and deserves) an apology. What kind of so called amigo spies on its friends? With everything that’s going on and yesterday’s gain, it’s hard to identify which direction the market will head. If we follow global markets, we are heading higher.
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