Sunday, December 29, 2013

Financial Market Vigilante: Credit Market Signals make good Stock Market Leading Indicators

Financial Market Vigilante: Credit Market Signals make good Stock Market Leading Indicators

This is a link to the very informative article that Daniel Moore has written about how 2014 will be a good year for stocks.  Even with the Federal Reserve tapering announcement, Daniel insists that the Fed is still doing a great amount financially to support the economy and the stock market.  He also illustrates that the 30-year treasury bond yield spread compared to the BAA1 Seasoned Corporate Bond Yield is a warning signal for a stock market top when the spread is a little more than 2%.  Currently, the spread is around 1.5%, and we are not in danger.  At the height of the 2008-2009 crisis, the spread was almost 6%. This is a fantastic article by Daniel Moore that would be beneficial to everyone.

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