Monday, stocks rose 0.4% in Asia but closed little changed in Europe and the U.S. on light volume. The big news of the day was the U.S. embassy opened in Jerusalem on Israel’s 70th anniversary. Tuesday, stocks fell 1.3% in Asia, closed little changed in Europe, and fell 0.5% in the U.S. on moderate volume. The VXO moved up 11% to close at 13.69. Precious metals fell 1% and their miners declined twice that amount. The The 10-Year U.S. Treasury Bond yield closed up 3% to close at 3.08.
Stocks continue to have bad breadth. A few weeks back, I was asked by a stock broker what my view was of financial markets. I told him it was negative but would have to get back with him with the details. About a week ago, I did.
I told him that although no one can predict the future, it appears to me that stocks have turned negative in the six-week window from the end of January into March. Breadth is one problem. Another is the headwind from rising interest rates. A third is crazy valuations.
I have been putting my “cash” position into 30-day U.S. Treasury Bills and 3 and 6-month CDs in a ladder fashion. The idea is to earn a little while remaining liquid enough to be ready to buy stocks when they finally correct with minimal exposure to loss of principal due to rising interest rates.
Wednesday, stocks in Asia closed little changed. In Europe they gained slightly while in the U.S. they rose 0.3% on moderate volume. The VXO fell 5% to close at 12.94.
Thursday, stocks fell 0.3% in Asia, gained 0.6% in Europe, and closed little changed in the U.S. on moderate volume. Friday, stocks rose 0.3% in Europe but fell slightly in Asia and the U.S. on moderate volume.