With the markets basically flat on Friday, our comments from Friday morning still apply as we head into trading this week. The CCM Bull Market Sustainability Index (BMSI) finished last week at 1,993, with little change occurring between last Tuesday and Friday. We anticipate a relatively slow trading day on Monday with the Fed due to make an announcement at 2:15 p.m. ET on Tuesday, September 21, 2010.
This morning’s Wall Street Journal has a good story on “risk-free” Treasury bonds:
At the start of the month, with pessimism on the economy peaking, investors rushed to buy long-term Treasurys and dump stocks. For now at least, their timing couldn’t have been worse. Since then, 10-year Treasurys have lost 2.2% and 30-year bonds are down 6.9%. The Dow Jones Industrial Average has gained 5.6%. In their rush for safety, many investors may have forgotten that Treasurys are far from risk free. (Full Story).