Good Wednesday AM, best day of the week

Bonds are struggling and the yield on the ten-year is now back above .71%. See graph below. If the 10-yr breaks .73, it gets interesting. Mortgage Bonds are doing a bit better, up a little on the day.

Dan Rawitch wrote: “Given the crazy and continued extreme bullish behavior in the stock markets, investors wake up each day and they must decide if the market is “Risk on” or “Risk off”. When in a risk-off mode, we go to bonds or metals and perhaps even currencies, but we limit our long exposure in the equity markets. Why would any investor be in a Risk-off mode given the fact that bull market continues to charge forward? Clearly this will end and it will end badly, but until it does, money will likely continue to flow out of bonds and into stocks. Tomorrow is the big day for the Fed’s speech in Jackson Hole, I believe we are also reacting to concerns that he may take a more hawkish stance. To that I say, NO WAY, and my hope is that we get a bounce back rally after he speaks. Do not bet on that, it is just a hunch at this point”

A little insight on how economists see the world:

Almost 80% of economists say there’s at least a one-in-four chance of a double-dip recession, following a record 32.9% plunge in GDP in the second quarter, according to a survey released on Monday from the National Association for Business Economics.

About 40% of respondents rate the COVID-19 response from Congress as “insufficient” and 37% said it’s “adequate,” according to the survey that summarized the opinions of 235 members and was conducted between late July and early August.

Did you know that on this day in 1919, Coca-Cola Co. successfully sold shares to outsiders for the first time, as a syndicate of banks and brokers from around the country bought 417,000 shares to resell to retail investors at an initial offering price of $40. An earlier attempt at a stock offering in 1892 failed miserably.

Please remain safe and healthy, and make today great!