HOPE OR FEAR? Observation of Muni Bond etf $LEO vs $DIA DJIA
Here's a big point... HOPE vs FEAR as shown by Municipal Bond Prices (using the Dreyfus Muni Bond Fund ETF $LEO)
Hope is the time when people are selling their "SUPER SAFE MUNI BONDS" to invest in stocks.
Fear is when people are buying SuperSafe Muni Bonds
It's a general-view, but worth attention.
If $LEO turns down, then look for the market to turn up for another leg-higher.
How to put this chart combination to work specifically is difficult, but you can at least see the waves of HOPE and FEAR (for growth in the economy).
The talk of tax cuts got the hope UP and then the realities of how difficult it is to make a change to the tax law put a halt to that hope.
Normally, I am watching the $SKEW index and $VIX to determine the general mood and it is showing good reason to be cautious here.
However, the amount of fear as shown by the price of $LEO moving up is giving me the idea we still have more upside in equities.
Call me a nervous bull. There are major rotations going on in sectors here with highly overbought and overowned internet-tech stocks at lofty heights of valuation and lowly valued, cheap stocks to own too.
What category do you put yourself in? And if you answer, what % of your portfolio is invested in equities?
Tim
9:49AM EST July 6, 2017
Hope is the time when people are selling their "SUPER SAFE MUNI BONDS" to invest in stocks.
Fear is when people are buying SuperSafe Muni Bonds
It's a general-view, but worth attention.
If $LEO turns down, then look for the market to turn up for another leg-higher.
How to put this chart combination to work specifically is difficult, but you can at least see the waves of HOPE and FEAR (for growth in the economy).
The talk of tax cuts got the hope UP and then the realities of how difficult it is to make a change to the tax law put a halt to that hope.
Normally, I am watching the $SKEW index and $VIX to determine the general mood and it is showing good reason to be cautious here.
However, the amount of fear as shown by the price of $LEO moving up is giving me the idea we still have more upside in equities.
Call me a nervous bull. There are major rotations going on in sectors here with highly overbought and overowned internet-tech stocks at lofty heights of valuation and lowly valued, cheap stocks to own too.
What category do you put yourself in? And if you answer, what % of your portfolio is invested in equities?
Tim
9:49AM EST July 6, 2017
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The market rallied during "FEAR"