10-year U.S. Treasury

The U.S. Department of the Treasury issues debt obligations, including 10-year U.S. Treasury notes. The debt obligations range in length, from short-term to very long-term. Debt that has an obligation of less than one year is called a bill; debt obligations from one to 10 years are called notes; and debt obligations that are longer than 10 years are called bonds. The 10-year U.S. Treasury note is important as many other interest-bearing securities are priced based on this heavily traded security. Since many investors around the world watch the rates of the 10-year U.S. Treasury note for signs of economic strength or weakness, it is important for all investors to be aware of the interest rate environment.


If the Economy Is Improving, Why Are Investors Pricing in a Slowdown?

By Monday, August 11, 2014
U.S. Economy Slowing Down Here in 2014The Bureau of Economic Analysis (BEA) surprised even the most optimistic of economists when it reported the U.S. economy grew at an annual rate of four percent in the second quarter of 2014. On the surface, the number—four percent growth—sounds great. But how serious should we take that gross domestic product (GDP) figure? Firstly,.

The Question Everyone Is Asking This Morning

By Friday, August 1, 2014
Stocks Turn Negative for 2014; Likely to Get WorseYesterday, the Dow Jones Industrial Average fell 317 points, while the NASDAQ Composite Index fell 93 points—respective losses of about two percent per index. This morning, stock market futures are down again. As a reader of Profit Confidential, this “rout” we are now in should come as no surprise. I have been writing for months.

What a Loan Officer Would Say to the U.S. Government

By Monday, March 31, 2014
Does the Size of Our National Debt Really Matter AnymoreFor a moment, consider yourself a loan officer at a major bank. Would you approve a loan for a customer who says they earn $1,000 a month, spend $1,300 a month, and don’t have a job? They also tell you they have unpaid debts of $17,000. I don’t think anyone would authorize that kind of loan because the chances of getting the money back are.

Stock Prices and U.S. GDP; Historic Relationship Turns Bearish

By Monday, February 24, 2014
In the first five weeks of this year, investors bought $22.0 billion worth of long-term stock mutual funds. (Source: Investment Company Institute, February 12, 2014.) But as investors poured money into the stock market, hoping to ride the 2013 wave of higher stock prices, stocks did the opposite and went down. The Dow Jones Industrial.

Why Are Car Sales Down So Much?

By Wednesday, January 8, 2014
Soft Auto Sales Just the Beginning of a Poorer 2014All of a sudden, auto sales are declining… Auto sales in the U.S. economy declined to an annual rate of 15.4 million units in December. In November, this number stood at 16.41 million units—a decline of more than six percent. (Source: Motor Intelligence, January 3, 2014.) Analysts were caught off guard by the decline in December auto.
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

Poll

Will slowdown in China affect the U.S. economy?

View Results

Loading ... Loading ...
×
From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

Read this message