Go to the Amazon.com link below for TIMING THE MARKET by Deborah Weir (Wiley, 2005).
Email: DebWeir@WealthStrategies.bz
Take her class at the NY Institute of Finance: nyif.com/courses/fimk_1014.html.
Thursday, January 18, 2007
Commercial paper quality spreads are narrow because of confidence in the markets. As Martha would say, "This is a good thing." This graph is from federalreserve.gov/releases/cp
2 comments:
Anonymous
said...
Just to play devil's advocate, could these very low spreads not also be another example of over complacency that often precedes a correction?
In the stock market, complacency usually leads to a correction. But the bond market focuses on getting paid in cash at a specified date rather than on dreams of future wealth. That's why TIMING THE MARKET (Wiley, 2005) uses bond market information at face value while using stock market information as a contrarian indicator.
2 comments:
Just to play devil's advocate, could these very low spreads not also be another example of over complacency that often precedes a correction?
Dear Anonymous,
Great question!
In the stock market, complacency usually leads to a correction. But the bond market focuses on getting paid in cash at a specified date rather than on dreams of future wealth. That's why TIMING THE MARKET (Wiley, 2005) uses bond market information at face value while using stock market information as a contrarian indicator.
All my best,
Deborah Weir, CFA
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