Tweet and Article by @ChrisAdamsMKTS
Greek Credit Swap Ruling Divides Investors – Our Take: The ISDA has ruled and the market responds with a “meh….”. I originally chose Chris’ article as the top story of the day because he has the best explanation of why the markets did not really move today on what one would think, with all the hoopla around Greece, would have been a major market moving event. After going through the article a bit more however I realized that there are a lot of hidden gem’s for the lay investor on the Situation in Greece. Here are the highlights:
Article by Derek Heckman on @seekingalpha
What to Do With Overvalued Treasuries - Our Take: Many articles have pointed out recently that after the spectacular run that Treasuries have had there is not much further they can go. What Derek points out however that most other people I read have not (one exception is The Financial Lexicon), is that from an investment standpoint, Bonds Should be treated no differently than stocks. Pick your allocation and then when one asset class rallies vs. another you adjust the allocation automatically paring back on the position as the asset moves into overvalued territory. Bonds are not different than stocks in that for a long term investor trying to time the market is almost always the wrong move.
Tweet and Article by @EverydayFinance
US Corporations Issuing Debt Like Crazy - Our Take: Corporations are taking advantage of historically low rates to issue more debt in order to grow their businesses. The Fed has basically created an environment where investment grade corporations can borrow at such a low cost that it would almost be dumb for them not to. Its also a positive sign for the economy as it means that there is enough opportunity for them to put the cash to work to justify issuing the bonds.
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