Daily Top Ten – September 9, 2016

1.ECB Does Nothing Causing Some Overnight Bond Volatility.

Global equities are also lower after the European Central Bank held interest rates at record lows and refrained from adding new stimulus. While President Mario Draghi said the ECB was looking at options to continue its money-printing program, investors were looking for more immediate action, including an extension or expansion of the current plan, or at least clearer hints of future actions.

German Govt Bond Yield 
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Investors Screaming “Gimme Shelter” by Moving into a More Expensive Asset Class

Gimme Shelter
The Rolling Stones

Oh, a storm is threat’ning
My very life today
If I don’t get some shelter
Oh yeah, I’m gonna fade away

Key Takeaways

  • The demand for bond funds relative to stocks is believed to be the highest on record.
  • When you look at all historical stock market highs, we don’t normally see the level of individual investor pessimism that we see today.
  • Stocks are not necessarily over-valued today—and bonds are not necessarily a safe haven.
  • Let research and academic history be your guide—not your emotions.

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