I discussed on yesterday's site how the government (probably to please Obama) fudged the figures on the nation's Gross Domestic Product to make the picture look better than it actually is. The fact is that the US is creeping out of the Great Recession at one of the slowest rates of any post-recession period in history.
The investing public takes the government's "revised" statistics as reality, and thinks that now the Fed will cut back on QE. As a result, bonds sagged, and as bonds go down, interest rates rise. As a result, the widely watched benchmark rate on the 10 year Treasury bond rose to 2.72%, and mortgage rates crept higher.
The widely watched Barclays 20 year + Treasury bond fund hit a new low (yesterday), as you can see via the chart below.
In the meantime, professional money managers go where the action and the potential profits are, and that's the stock ... Log in or subscribe to continue reading.
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