Thursday, March 22, 2007

The "disinversion" of the yield curve is very positive for stocks. The three-mo./ten-yr. spread has shrunk from 60 BP to 49 BP (about 15%) during the past week.

3 comments:

Jim said...

Thanks Deborah,
With a presidential campaign forthcoming, ongoing war, and yield curve disinversion, would you now have expectations for a decent return (in line with historic averages for pre-election years) for the market this year?
Regards, Jim P.

Deborah said...

Yes, I do expect good returns this year for exactly those reasons.

Have a great weekend,
Deb

Jim said...

Deborah,

Thanks so very much for sharing your thoughts. I really enjoyed reading your book, and was pleasantly surprised when I found that you maintain this blog. The markets can be nerve wracking at times and it helps to know your "seasoned" perspective. Also, your analysis of bond spreads is something I have never been proficient at, but I now appreciate
it's importance. Thanks again.
Regards, Jim P. (also from CT)