After a long holiday weekend, Wall Street got off to a relatively good start this week, with the Dow Jones Industrial Average finishing higher for the 20th straight Tuesday. In economic news, investors welcomed better-than-expected housing and consumer confidence data; the S&P Case-Shiller 20-City home price index rose 10.39% for March, while the Conference Board’s Consumer Confidence Index for May also topped analysts’ expectations, jumping to a five-year high of 76.2. Meanwhile, investors shifted their attention to the high-yielding corners of the market, which have recently suffered as Treasury yields skyrocket to levels not seen in over 13 months.
Below, we outline seven insightful articles circulating around the financial space this week:
- Stocks As Bonds And Modern Portfolio Theory at The Blog of Horan Capital Advisors
In this article, David Templeton takes a close look at the relationship between stocks, bonds and the central bank’s stimulus measures, highlighting how modern portfolio theory has played out in the current market environment. - Precious Metals & Miners Start Bottoming Process at TheGoldAndOilGuy.com
Though precious metals have taken a beating so far this year, Chris Vermeulen thinks both precious metals and miners may be finally bottoming out. In this article, Vermeulen gives us his technical analysis of gold, silver and the Market Vectors Gold Miners ETF (GDX, B). - As US House Prices Explode Higher, We’re Still Quite A Way From Bubble Levels at Quartz
In this short and insightful piece, Matt Phillips discusses the key housing trends seen in recent years, highlighting several charts that investors should be paying close attention to. - Treasury Yield Snapshot: 10-Year Yield Highest Since Early April of 2012 at Advisor Perspectives
On Tuesday, yields on the 10-year note rose to their highest level in more than 13 months. This article, written by Doug Short, discusses U.S. Treasuries’ recent price movements as well as a historical look at yields over the years the Fed implemented QE. - Is Tesla The Next Google Or DoubleClick? at UpsideTrader
In recent sessions, investors have witnessed Tesla’s (TSLA) meteoric rise, making many understandbly leery of the share’s recent rally. In this piece, Joe from UpsideTrader discusses his take on the stock, highlighting where he thinks Tesla may be headed next. - Inflation, Deflation, and QE at Coppola Comment
In this article, Frances Coppola highlights a key topic that has gotten significant attention since the Fed started its stimulus measures: inflation. - Utilities And Staples: One Of These Defensive Sectors Is Not Like The Other at Afraid To Trade
In this insightful piece, Corey Rosenbloom gives us his analysis of the utilities and consumer staples sectors, highlighting recent trends seen in the Utilities Select Sector SPDR ETF (XLU, A) and the Consumer Staples Select Sector SPDR ETF (XLP, A+).
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Chris Vermeulen