I hope you had a Blessed Christmas. To everyone in the Midwest, I hope you were safe and warm during the 2009 Christmas Blizzard. This blog will be very brief.
This past week mutual funds have been doing end of year window dressing which means that they are positioning their portfolios with the things that they want their clients to see. This gives a glimpse into what these investment professionals think about the future.
During the week the stock market rose, reaching a high for 2009, and the long term treasury bond yield rose so that the yield spread also reached a high for 2009. The stock market high is normal for this period in the business cycle. The bond yield curve has me a little concerned as one of the bond funds did not perform very well. What this means is that accounts are positioned well except for a particular bond fund that will probably be sold and the money moved to another fund next year.
The economic news this week was good, unemployment and durable good orders were better than expected. In addition the health care reform bill passed the Senate and this is now old news for stock market investors
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