As volatility continues to drag, and volumes subside, the market clearly is well supported as any downside action is just met with buy the dippers as worse economic data and easy money continue to support the markets.
Last Fridays NFP number was a bit of a shocker coming in at 126000 against an expectation of 200K plus, the initial reaction was a sell of in Equities and Bond Yields dropping, however we have seen time and time again that bad news is good news and this resulted in a massive reversal on Monday as all was ok again. The move up has also pushed up European stocks to highs.
Bunds are above 159 again as Yields near negative territory and the Swiss Bank just issued the first negative Yielding 10 Year Bond which was over subscribed.
What is this world coming to, investing in an asset which they are charged to borrow to the government. In my opinion any fund manager buying this debt isn't doing his job correctly. However this is becoming normal as negative yielding bonds have become the worlds fastest growing asset class accounting for a quarter of the Euro Government Debt Market.
We now live in a world where people are happy to pay the government to lend them money, and one where Equities cannot go down cause we have low inflation and a sub standard economy. Yield curve plays are non existent, which leaves most of the opportunity in Energy related products.
With Oil and Nat Gas moving and providing opportunities. I'm looking to short any rally in Oil as we remain oversupplied, and we remain in a 45 to 53 trading range for the past few weeks, and until this breaks one way or the other, I will continue to play this range.
In Agriculture, the dip below 400 has got me interested in Corn again. looking to the July Future, I would be looking to go long on another pullback, but buying a put against it as a hedge.
Last Fridays NFP number was a bit of a shocker coming in at 126000 against an expectation of 200K plus, the initial reaction was a sell of in Equities and Bond Yields dropping, however we have seen time and time again that bad news is good news and this resulted in a massive reversal on Monday as all was ok again. The move up has also pushed up European stocks to highs.
Bunds are above 159 again as Yields near negative territory and the Swiss Bank just issued the first negative Yielding 10 Year Bond which was over subscribed.
What is this world coming to, investing in an asset which they are charged to borrow to the government. In my opinion any fund manager buying this debt isn't doing his job correctly. However this is becoming normal as negative yielding bonds have become the worlds fastest growing asset class accounting for a quarter of the Euro Government Debt Market.
We now live in a world where people are happy to pay the government to lend them money, and one where Equities cannot go down cause we have low inflation and a sub standard economy. Yield curve plays are non existent, which leaves most of the opportunity in Energy related products.
With Oil and Nat Gas moving and providing opportunities. I'm looking to short any rally in Oil as we remain oversupplied, and we remain in a 45 to 53 trading range for the past few weeks, and until this breaks one way or the other, I will continue to play this range.
In Agriculture, the dip below 400 has got me interested in Corn again. looking to the July Future, I would be looking to go long on another pullback, but buying a put against it as a hedge.
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