Cautious floating

Markets opened with stocks close to flat, but mortgage bonds moved higher after taking the day off yesterday.  The IMF is in the news stating economic global growth is projected to be the lowest since 2009 and they are citing Europe’s and the U.S.’s fiscal debt situations as the main obstacle.  While many investors ignore the IMF’s advice, it’s hard to argue with the obvious.  It appears that everyone is aware that fiscal responsibility is the answer, except those in charge of determining policy…Politics at its finest.  Stocks are bracing for earnings season to start after the closing bell today, with Alcoa kicking it off.  Alcoa is a favorite for investors, as its business model is considered a very broad and accurate gauge for global economic growth.   The bond market has a $32 billion auction today, so we will watch for the results and start with a cautious floating bias.