Investment Grade Bond Market Improving
By David Spurr on May 11, 2009 | More Posts By David Spurr | Author's Website
I use the Fidelity Investment Grade Bond Fund (FBNDX) as a window into the corporate bond market. It has roughly 13% invested in US Treasury Securities. Recently Treasuries have been selling off; the weakness in the treasury market has not hurt this fund. It has continued to move higher. As the bond market starts to show further improvement, it’s likely that we could see stocks continue to rally.
I’ll be looking for signs of weakness in this market as a precursor to an equity correction. The S&P 500 (^GSPC) has now had 9 winning weeks in a row. We are overdue for a pullback.
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