A resource for debunking the investments myths peddled by the financial press and Wall Street hype and presenting rational,sensible investing approaches based on sound research and academic findings. This blog is maintained by Lawrence Weinman MBA an independent Registered Investment Advisor www.lweinmanadvisor1.com
Tuesday, December 23, 2008
I'm Not Surprised By This: The Bond Market Corrects A Bit
I wrote on December 7 about what I felt was the irrationality in the bond market particularly in terms of the spread between investment grade corporate bonds and treasuries. That gap has narrowed considerable as of late. This can be seen in the movement of LQD ( 6 month chart at left) the ishares investment grade corporate bond etf which is uo 5.76% in the past week and 10.53% in the past month. Returns of he treasury etf representing the same maturity, IEF (chart at right)is up 2.36% for one week and 7.21% for the past month.
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