26 Mar S & P 500 just 5 points away from all-time high
Stocks are higher, with the S&P 500 just 5 points away from the all-time high of 1565. Some economic reports of the day were better than expected, with Durable Goods beating expectations and the Case Shiller Home Price index showing its best year over year figure since 2006. However, Consumer Confidence was lower than expectations and New Home Sales were slightly lower as well. Nevertheless, stocks seem oblivious to anything negative, with the all-time record so close in sight. Meanwhile in Europe, Cyprus continues to be a small, but very dark cloud over the financial world. The bailout repayment terms are nothing short of stealing from citizens with bank deposits of over $100,000 Euro’s. The details are not set, but a figure in the area of up to a 40% impound is said to be in consideration. The bigger issue is the statement from some EU officials that this should be the template for bailouts of all countries…. We may feel that it could never happen here, but considering issues like NY Mayor Bloomberg controlling the size of a soda you can buy, it may not be as far off as you think. mortgage bonds are trading in a tight range between support and resistance. With bond auctions this week, a cautious float but ready to lock stance would be the ideal approach.