Online Stock Trading | Tuesday Action

Tuesday Action


Filed Under Market Commentary |

Sellers did not come in droves today…Liked the action on IIG

Still the inverted yield curve persists, this latest attempt to rally will probably die slowly. 1998 was the last time the yield curve inverted and the market didn’t go down…2 years later it did again and BAM! Nazzy gets sliced in half!

Corporate earnings and cash on the balance sheet will support the ecomony just enough where we do not have a HUGE recession.

I think Greenspan was raising rates to force Company’s with large sums of cash to start spending it…why would you spend cash where you can borrow short term at 2% and lend long at 4%…make the spread or carry trade…why would you spend money when you can make it??? Now what Greenspan has created is an inverted yield curve, carry trades unwind…If there is a recession it’ll be brief, companies with the cash will spend it and the ones who either doesn’t have the case and/or is the receipant of that cash will come tumbling down…We’ll see this come april/may earnings season….keep an eye out folks!

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