I am always amazed at the attention 30 stocks can generate, but the DOW remains the center of the stock universe. On Tuesday, Wednesday and Thursday it shed 400 points; creating flash backs from February 27 when it swooned 400 points in one day.  Bill Gross, aka Mr. Bonds, raised his estimates for bond yields. Rising interest rates are the market’s kryptonite.Â
Somehow all was forgotten on Friday as the DOW reclaimed 157 points. I heard someone on bubblevision say that the market has closed up the last 12 Fridays in a row.  Often merger activity is announced on Mondays.  By buying on Fridays, investors are positioning themselves for any pop on a merger announcement.  The bottom line is volatility rules and as investors we must get accustomed to 400-500 point weekly swings.Â
Since the introduction of The Big Spend portfolio I pay more attention to the general market, but my forte is commodity stocks. Commodity stocks take volatility to another level. Some weeks I would be happy with only a DOW equivalent 400 point swing. This was one of those weeks. Let’s look at the portfolios. Continue reading “Week in Review 6/8 – Bond Market Meets Stock Market and Wins”