D&D Note (2.14.2018) ~ Bond Proxy Equities Selloff as Inflation Creeps Up ~
On a day when the 10YR note hit 2.9% we saw the bond proxy stocks selloff. Specifically the sectors of Utilities, Telecom, and Real Estate which all have high dividend yields and have been used as a proxy to bonds during this period of historically low interest rates. Conversely we saw Financials and Technology sectors lead the day for gains.
The 10YR hit a new 4-year high of 2.92% intrude day before coming down to 2.909. The move was sparked by the CPI report (Consumer Price Index) rising 0.5 percent when expectations where 0.3% increase. This has led investors to think inflation is back in the macro picture.
It was revealed that Warren Buffet finally dumped 94.5% of shares held in IBM while at the same time doubling down on the world’s biggest company Apple. Berkshire Hathaway’s Charlie Munger weighed in on Bitcoin saying it is a ’noxious poison’. The holding company also invested in Israeli generic drug maker Teva.
Perhaps the biggest story of the day was the VIX falling below 20 which signals a green light to buy equities signaling that fear as left the current market climate.
D&D movers:
– BABA up 4.19%
– NVDA up 3.78%
– FB up 3.68%
– TCEHY up 3.25%
– IMLFF down -1.08%
– MO down -0.70%
– EMHTF down -0.45%
– UNLRY (UNCH)
Indexes
– DOW up 1.03%
– NASDAQ up 1.86%
– S&P up 1.34%
Sector Movers:
– Financials up 2.32%
– Technology up 1.95%
– Consumer Discretionary up 1.56%
– Utilities down -1.19%
– Telecom down -0.70%
– Real Estate down -0.63%
Notes
– US 2-YR 2.18% (up 0.008)
– US 10-YR 2.909% (down -0.004)
– US 30-YR 3.162% (down -0.015)
Volatility
– VIX 19.26 (down -22.87%)
Crypto (3:00 PST)
– BTC $9,439.99
– ETH $921.0
– BCH $1,355.60
– LTC $212.70
Metals
– Gold $1,355.90 (down -0.15%)
– Silver $16.85 (down -0.17%)
– Copper $3.232 (down -0.12%)
Energy
– Oil $60.79 (up 0.31%)
– Brent $64.36 (UNCH)
– Nat Gas $2.617 (up 1.16%)
D&D Investments 
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