The Market Closed at Another High

I hope everyone had a nice three-day weekend. The stock market closed Friday at a new all-time high. The S&P 500 finished the week at 2,096.99 and the Dow is back over 18,000. This was almost certainly a new inflation-adjusted high. Our Buy List continues to outpace the climbing market as well. I try not to get worked up about short-term moves, but this is nice to see. This month, our Buy List is up 7.88% to the S&P 500’s 5.11%.

Things may get jittery this week as investors turn their attention to the soap opera between Greece and the rest of Europe. The debt talks have broken down but still, investors seem optimistic that some sort of deal will be reached. I think both sides are working hard to position themselves as not “caving in” in the eyes of their respective voters. Once this is achieved, they can hammer out a deal. Consider that consumer prices in Greece have fallen for 23 months in a row. This is a problem that the important people in suits cannot allow to go on much further.

The bond market has quietly retreated over the past few days, bearing in mind that this comes after a spectacular run. The yield on the 10-year Treasury fell as low as 1.65% on January 30 and February 2. Since then, the yield has drifted higher as it’s up to 2.06 this morning. That’s still very low, but it’s interesting to see the bond market finally move downward.

Posted by Eddy Elfenbein on February 17th, 2015 at 9:37 am

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