Watch high-grade bonds (click on the chart to enlarge). MBB has outperformed the S&P 500 by a wide margin in the past 12 months.
Another interesting note. High-grade bond yields tend to decline (bond prices to rise) more often than not during the second half of the year.
Another pattern I noticed. It is not unusual to see yields decline (bond prices rise) when commodities are weak.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
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