Sunday, July 13, 2025
On Monday, the major stock indices in the US were all down at least 7% for the day. It was the largest one-day drop since 2008, the year the Great Financial Crisis started. This time around it’s not subprime loans causing the meltdown, but a highly contagious virus and an oil price war. While stocks […]
The market continues to be ultra-volatile due to serious concerns over the global economy in the wake of the coronavirus. High yield bonds (aka junk bonds) tend to sell off during times of high stress as investors move to the safety of government bonds instead. This past week, someone bought a one-week put spread in […]
The recent, short-term, stock market crash has led to a “flight to quality,” which means money running out of stocks and into safe investments such as U.S. Treasury notes. Demand for Treasuries lifts bond prices, which has the mathematical effect of pushing down yields. Over the last two weeks, the yield on the benchmark 10-year […]
