Assuming most everyone in the United States had a nice Thanksgiving holiday weekend, now it's back to business as usual for Wall Street, the business of making money. The week ahead is packed with fresh data for investors to digest beginning with the release this morning of Construction Spending for October (+0.8% versus the +0.3% consensus) and the ISM Index for November (57.3 versus 55.5), the highest reading since November 2011.
Bond prices fell on these two reports with the 10-year Treasury yield rising to 2.80%. Stocks initially sold off, the idea once again being that the Fed will move up its schedule to taper QE. Don't count on it. U.S. consumers spent an estimated $57.4 billion during the Thanksgiving weekend, down 2.7% from last year, the National Retail Federation has estimated. The U.S. consumer accounts for two-thirds of GDP growth.Read
Nine days into the month of December finds the bulls still in charge following a topsy-turvy first week of the month that culminated in a big up day for equities bolstered by what at first glance was a buoyant jobs report. Over the weekend, economists had a chance to dissect the numbers in more depth and found that, yes, there were more jobs created, but a much higher percentage of those new jobs were at the low end of the pay scale.
That fresh piece of reality has bond sellers putting on the brakes. This morning, the benchmark 10-year Treasury yield edged back down to 2.80% as fears of near-term Fed tapering of its $85 billion in monthly bond purchases takes a back seat once again to risk-on capital flows into equities, including selected high yield. The year-end tone for the U.S. and global markets remains upbeat, devoid of politics and geopolitical risk at the moment, which is translating to taking on more market exposure and thereby feeding upside momentum.Read
The compare and contrast feature includes a table of guaranteed yields reflecting current yields as a way to compare risk-free investments versus recommendations within the Cash Machine service. Having a handle on what Jumbo Certificates of Deposit, Treasury Bills, Treasury Notes, Ginnie Maes and Money Markets are paying provides important reference points for investors stepping outside these traditional and ultra-safe investments.
Yields determined as of 11/11/13.
I'm always looking for new investment opportunities to add to our portfolios. Here's what I'm researching right now. I'll let you know if any of these companies meet my buy criteria.
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For more than five years, Bryan has brought his expertise on high-yielding investments to the Cash Machine service. His main goal is to help income investors craft a portfolio that will pay a reliable income even during the worst of times. Read