Phil Grossfield's Blog


Kids Birthday Parties; Volatile Bond Market

kidsbdayMy Schedule…and A Little Extra:   Planning birthday parties is challenging and time-consuming…this is what I’ve learned as I watch my wife plan the birthday parties for my soon to be 5-year old son and 8-year old daughter.  I have also come to learn that they are expensive…ugh.  |||  Friday’s call of action:  do one random act of kindness today.  It can be anything…open a door for someone; offer to help someone with something, anything; make a charitable donation; say something kind to someone; make someone smile, apologize for something you’ve done…do something, anything, no matter how small or big a gesture…some random act of kindness.  Now watch this:  Mr. Rogers Remix

My Schedule:  I have one meeting today at 1:30p and otherwise available until 4:30p….

My Market Watch:  This is a scary time for bonds and as such, rates/pricing are very volatile right now…let me explain.  First, there is usually an inverse relationship between stocks and bonds…if traders buy stocks, then they sell off bonds to free up money, and vice versa.  If they sell off bonds then rates/pricing typically worsen.  Okay, with that basic understanding, one of the indicators traders look to is moving averages, that is, how high and low has the bond traded in comparison with trends.  There are floors and ceilings associated with the moving averages.  For example, right now the bond is trading near a floor and traders are watching closely…if the trading bounces off the floor and improves, then rates/pricing should stabilize.  But if the trading falls below the floor, then traders will continue to sell off bonds until the next floor gives them some guidance.  THIS IS THE SCARY PART.  So, let’s hope the bond trading bounces off the moving average floor it is dancing on right now because if it falls through, then watch out below!  I hope this makes sense…let me know if you want more discussion…. My Disclaimer

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