< HOME  Sunday, December 18, 2005

'tis the Season for a RALLY, fa-la-la-la, fa-la-la-la

If you're heading to Wal-Mart this Season for your holiday shopping, then you're heading in the WRONG direction!

Turn that mini-van around and head over to the BOND market! That's where the REAL STEALS are!

Investors in the $4 trillion U.S. Treasury bond market are benefiting from what's become a holiday tradition, a December RALLY.

The benchmark 10-year Treasury note is headed for its fourth straight December gain.

Treasury prices advanced in 12 of the last 15 Decembers as fund managers sought the safety of U.S. government debt to protect gains or limit losses as year-end approaches.

* * *

Trading bonds based on the December trend compares with other market superstitions, such as buying or selling stocks based on the outcome of the Super Bowl, the National Football League's championship, or buying heating oil in the fall before the winter.

The seasonal pattern is "probably number seven on the list of five things that concern me,'' said James Jackson, who oversees Treasury investments at RiverSource Investments in Minneapolis, which manages $100 billion of bonds.

As a fund manager, he said, "you'd hate to be caught leaning against your fundamental beliefs based on something as non-explainable as a seasonal pattern."

I don't know what he's bitching about;

we're the one's being BOUGHT and SOLD!


At Sunday, December 18, 2005, Anonymous Anonymous said...

If Santa Claus should fail to call,

Bears will come to Broad and Wall.

source unknown, very old investment cliche'

At Sunday, December 18, 2005, Blogger Gothamimage said...

Take a look at Dick Cheney's eyes. What do you see? Those are not your grandma's carbunlces.

Take a look at his mouth. What do you see?

An inverted yield curve? The long bond rally?


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