A Long Buy of the Rumour, Possible Short Sell of the Fact

November 3, 2017

This week, Republicans in the US House of Representatives finally unveiled their tax bill—designed to be a compromise between the aggressive tax cuts introduced by President Trump weeks ago and treatment of deductions that have been called for by Conservatives in order to contain the budget deficit. Considering the magnitude of gains in US stocks this year, it is clear investors have planned on aggressive tax measures and not a watered down bill.

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Higher Bond Yields and Stock Yield Compression

October 27, 2017

Equity markets are charging into year-end with a vengeance.  Yes, there are still two months to go before we sign off on 2017, but large funds are viewing this as perhaps the last year of the cycle to push the needle.  This is reminiscent of the November-December period of last year, with some similarities and some key differences.  One of the things that could halt this advance is that the attractiveness of bonds is starting to improve.

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