Monday, March 26, 2007

The 2-year/ten-year spread is normal for the first time in over a year. Things are looking up!

7 comments:

Anonymous said...

High Yield Constrained* n.a. n.a. n.a. n.a. n.a. 7.380 8.610 n.a. 249.00
354.00

Jim said...

Deborah, If the FED cuts rates as a result of a weakening economy , do you feel that will that be bullish for stocks? Thanks, Jim P.

tommyB said...
This comment has been removed by the author.
tommyB said...

Related article:

http://www.yieldcurve.notlong.com

Deborah said...

Dear Jim,
Yes, rate cuts are always good for stocks.
Deb

Dear Tommy,
Great article...thanks.
Deb

MarkM said...

Not to be a partypooper here but were rate cuts good for stocks in 2000-2002? Long wait til traction set in there. I would qualify it by saying rate cuts are "supportive".

Deborah said...

Dear MarkM,

Yes, rate cuts are supportive; as Chm. Greenspan said, monetary policy is a blunt instrument with long leads and lag times.

Best regards,
Deb