Steeped In It

Another day, another record high for US equities. The S&P rose a seventh straight day Friday, topping 3,500 in the process, and capping off a fifth consecutive week of gains and an eighth in nine. The Dow erased its losses for the year. Data suggested the US consumer wasn't totally tapped out in July, a month during which the fate of generous government assistance programs was called into question and virus caseloads rose across the Sun Belt. At the same time, consumer sentiment remains

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5 thoughts on “Steeped In It

  1. Couple weeks ago on The Huddle the conversation turned to lower yields approaching 1.1 on the 30 if I recall and Kevin was deathly quiet. The only sound to be heard was the crack of a beer opening! Can only imagine what he was thinking. Same thing I was.

    Well……..that cold one should go down a little easier this weekend…..

    1. Kevin has recommended IVOL as a steepener bet; I’ve been in and out of it over the past 3 quarters and have no complaints other than wishing I’d stayed in it more often — but a lot of its current price in the mid 27’s is a fluke from March, when yields “steepened” simply due to the liquidity crunch, so I don’t feel too bad about missing out on that fluke.

      Read up on it and make your own decisions, of course, but I’m happy with the manager’s hypothesis and her methods.

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