this post in addition to pointed out that nosotros are seeing the same blueprint repeated at present. Indeed, equity pose book has right away exceeded equity telephone telephone book for vii consecutive trading sessions, a province of affairs that inwards the recent yesteryear has been associated alongside marketplace bounces.
* Tax-Free Bond Pricing yesteryear Geography - I took a expression at iv Vanguard state-specific long-term, tax-free bond funds. Two are from formerly hot existent estate regions, California (VCITX) in addition to Florida (VFLTX), in addition to 2 are from the northeast, Massachusetts (VMATX) in addition to New York (VNYTX), which has experienced less boom/bust. Recall that I constitute banking concern functioning weakest inwards the West in addition to Southeast. Since July of 2007 (chart at top), we've seen the weakest toll functioning amid the tax-free funds inwards California. Florida in addition to California tax-free bonds inwards the funds are yielding near xx solid set down points to a greater extent than than bonds from N.Y. in addition to Massachusetts for bonds of like duration. Should housing in addition to economical slowdown progress to the indicate of threatening the budgets of municipalities, I would expression these divergences to widen.
* Changing Expectations - Note the rally of short-term Treasury Federal Reserve notation prices (SHY) to multi-week highs. We've seen two-year notes lose something on the guild of xxx solid set down points inwards only the final 2 trading sessions, a huge deed for that market. This suggests quite a shift inwards rates watch from inflationary concerns (and anticipation of Fed tightening) to recessionary concerns (and anticipation of growing economical weakness).
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