Interesting day

As of 2:00 pm the market is fairly strong. Usually LQD is weak when the market is strong. Not today. LQD is up a firm 0.54%. Not surprisingly JNK is firm (because of the strength of the market), but weaker than LQD. LQD is even stronger than XLB (materials).

It looks like the markets are saying the economy is slowing down and we should not trust the strength of commodities. Some smart people (John Taylor and Feldstein) are saying the economy may be slowing down sharply in the second half).

Should we hedge commodities with LQD?

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest

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