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30-Year Yields Break 2008 Support Levels and the DAX Continues its Upward Trend

By January 23, 2015November 19th, 2015Weekly Market Observations (Archives)

By James Dondero | January 23, 2015

  • While deflation and a strong US Dollar remain longer-term market trends, we continue to believe oil could be near a short term bounce.
  • Yields on the 30-year US Treasury have now broken their 2008 and 2012 lows, as yields in the US continue to converge with those around the globe.
  • US Equities continue to hold support and are finding encouragement from the DAX. This German Index surged 5% last week, and has been a good leading indicator for US markets the past few years. Additionally, we suspect the recent outperformance of small cap stocks over large caps may be coming to an end.
  • The general outlook overseas remains mixed with Russia and Brazil weak, while India and China remain strong.

The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results.