Corporate Market: Decent day today as some issuance came back with Juniper Networks doing a billion in 5s, 10s and 30s (existing 30s sold off on the deal) and Arcelormittal announcing a benchmark size deal in 5s, 10s and 30s.
As I have so graciously outlined, issues hitting their highs continue to trounce issues selling at their lows. Tells me that credit is still being sought after. Personally, I would still be a buyer of credit - the hell with the polyannas saying bubble and risk due to rising rates - as the risk premium relative to the yield is still attractive and as far as rising rates, credit should provide excess returns vs treasuries or you can swap into floating. For disclosure, I am long LQD.
Equities: Equities eeked out about 50bps on the day as oil fell somewhat on assurances supplies will be maintained. Investors also seemed heartened by Fedspeak about increasing oil prices not affecting growth.
Advance-declines were a little better than 2 to 1 positive on the New York Stock Exchange, and negative by 2 issues on Nasdaq about dead flat. Up/down volume was 2 to 1 positive on New York with total volume was just under 1.25 billion. Nasdaq traded just over 2 billion shares, and had about an 11 to 9 negative ratio.
As I have continually maintained, mid-cap growth is still the sector to be in. Here's a little snapshot of YTD large cap growth (SPY), mid cap growth (IWP) and small cap growth (IWO). I am still overweighted mid cap growth in the passive portfolio with small cap growth bringing up the rear.
Personally, I think equities are getting a bit stretched, but I don't fight tides.
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