I think I can, I think I can…the Dow Jones Industrial Average is the little engine that’s working hard to get to the all-important 11,000 milestone. While we watch and wait, exchange traded funds (ETFs) do the same thing.
Big moves in the Dow may be a few weeks off. Economic news in the days ahead is going to be light, since everyone’s more focused on lining up the ducks for first-quarter earnings season, which kicks off next week. When the Dow does cross 11,000, it will be the first time it’s surpassed the mark since Sept. 29, 2008. SPDR Dow Jones Industrial Average (NYSEArca: DIA) is down 0.13% so far. [Two Indexes ETF Investors Should Know.]
If you thought the Greece problem had reached a resolution, think again. The European Union is concerned that the rescue plans would fall apart after Greece said that it’s considering bypassing the International Monetary Fund (IMF) in any rescue package. E.U. leaders had hoped that the IMF would play a key role in any package. As a result, the euro declined 1.4% against the yen and 0.8% against the dollar. CurrencyShares Euro Trust (NYSEArca: FXE) is down about 0.8% so far today. [Spain ETF: Big Country, Big Trouble.]
Who’s driving the bond markets? Companies with lower rates are now seen as the most important driver of the bond markets year-to-date. Bond analysts suggest thatt, excluding financials, 65% of investment-grade corporate bonds coming to the market this year have been rated BBB. That’s only a notch above junk. At this time last year, 25% of corporate bonds coming to market had that rating. iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca: LQD) is up 0.5% this morning; bonds rated BBB make up about 11% of the fund. [Interest Rate Impact on Bond and Equity ETFs.]
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.