Phil Grossfield's Blog


Inside Out — Bonds Rally – Greece In Big Trouble

insideoutInside Out.  I was surprised…it was a really good movie…a smart movie.  The entire time I was watching it all I could think about was how smart it was to put a person’s emotional well-being into an animated world that actually makes sense.  I thought about people I know that seem trapped into thinking one way or another.  Why does their joy seem to be trapped somewhere deep and dark? Have they forgotten how to be happy?  But more importantly, this movie reminds you that all of your emotions have a place…fear can be useful…sadness can be useful.  And without those emotions, we’d be out of balance.  Like most things, there is a delicate balance between our emotions, and if they get out of balance, then our emotional well-being can get trapped.  My wife actually cried during the movie because it made her think about one of her loved ones whose emotional well-being is currently trapped.

I encourage you to see this movie with your kids…ours loved it.  It’s not often I go to a movie with my kids that I come out with a deep sense of satisfaction, like my kids learned something valuable, and so did I.

My Market Watch – June 29, 2015

For an explanation on how traders look for technical signals to decide whether to worsen or improve rates, read My Great Bond Elevator Analogy.

greece5Bonds Rally As Greece Is In Big Trouble.  The 30-year Fannie Mae bond is up +56bps since Friday’s close. Generally a lender’s pricing improves when the bond is being bought, like this morning.

The market appears to be reacting to the Greek dramatic saga. It looks like Greece is not going to get the bailout they so desperately want. Moreover, the banks will be closed in Greece all week and if you have any money in there you can only withdraw 60 euros a day. Can you imagine? Check this out: Greece Shuts Banks In Bid To Prevent Collapse.

This kind of news gives traders a horrendous feeling about global markets and the global economy. Therefore, stocks don’t seem very attractive right now so traders would rather invest in safer bonds instead and when that happens a lender’s rates/pricing improve. Let me know if you have any questions…

My Disclaimer

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