Bond Aren't Buffering Stocks As Earnings Surprises Near Record
-
Jason Goepfert
Published: 2018-05-02 at 13:20:49 CST
This is an abridged version of our Daily Report.
Balanced portfolios see unusual losses
Over the past few months, there was a 5-year high in days where stocks sold off and bonds did too.
That raises worries that the typical 60/40 stock/bond portfolio allocation will suffer as bonds don’t lift when stocks dip. Other times when bonds failed to provide a cushion for stocks did not consistently lead to losses.
Analysts can’t keep up with earnings
Companies in the S&P 500 are beating Wall Street analysts’ earnings estimates at a near-record clip. Through April, the beat rate exceeded 80%, only seen once before in 25 years. A high percentage of positive surprises was not an automatic buy signal for stocks.
Corn keeps growing
Most commodity contracts have a negative correlation to the U.S. dollar. That makes it unusual to see new multi-month highs in both the dollar and a commodity like corn, which triggered on Tuesday. Going back to 1980, both the dollar and corn hit a three-month high on the same day 47 times.
For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today. |
Related Posts:
- Using options to trade a positive seasonal window in TLT
- Junk bonds are trying to recover but remain suspect
- Time to Keep a Close Eye on Corporate Bonds
- Investors Have Soured on Stocks AND Bonds
- Optimism is Low in Both Stock and Bond Markets
Tagged As:
The post titled Bond Aren't Buffering Stocks As Earnings Surprises Near Record was originally published as on SentimenTrader.com on 2018-05-02.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>