Stocks Remain Near Records As Yields Fall.

The yield on the benchmark 10-year Treasury note is closely approaching it's low for the year. Even with this news U.S. Stocks though ending the day slightly lower, have still managed to retain most of their gains for the year, as they continue to hover around all time highs. This is especially interesting when taking into account that earlier on in the year, investor fears of another coming recession dragged both the overall price of stocks and the yield of the 10-year treasury note down together. With all of this taken into account, it is very interesting to see the sort of strength that we have continued to see from the DJIA and NASDAQ composites this year, as they continue to hold together nicely, even with today's modest decline.

This is proving to be a confusing time for investors worldwide, with many international economic powers seeing their yield rates drop. Currently what most investors are hotly waiting for, is whether or not the Federal Reserve will be raising short-term interest rates because until they do financial stocks are expected to be stagnant, due to their performing better when interest rates are higher. As reported by the Wall Street Journal, “Utilities, telecommunications and consumer-staples shares, which often do better amid low-interest rates, rose Thursday,” because of the Fed continuing to wait to raise interest rates. With their upcoming meeting in the U.K. Next week, it will be interesting to see if they finally decide to make the push to raise interest rates, or if such a decision will be pushed further out.

Needless to say, we will continue keeping an eye on developments with the fed, being that we like to ensure that we not only provide in depth information on the OTC market but also the inner workings of the overall economy as well.