S&P 500 closed at record high of 2439 after strong finish to the week
10-year bond yields hit 2017 low at 2.159%, making F Fund less attractive than stocks
Low bond rates continue pushing investor money into equity funds (C/S/I)
After the long Memorial Day weekend, the markets took a little breather on Tuesday and Wednesday. But then they came on strong in the second half to finish out the week at record highs with the S&P 500 closing at 2439. What a nice way to start June!! One of the factors driving this market is the continued low in bond yields. For instance, the 10 year bond just dropped to its lowest interest rate (2.159%) in 2017. Investors looking for return subsequently spurn the bond market in favor of equities, which drives demand and price up. That said, the recommended allocation remains 100 percent in equities (C/S/I).
After the long Memorial Day weekend, the markets took a little breather on Tuesday and Wednesday. But then they came on strong in the second half to finish out the week at record highs with the S&P 500 closing at 2439. What a nice way to start June!! One of the factors driving this market is the continued low in bond yields. For instance, the 10 year bond just dropped to its lowest interest rate (2.159%) in 2017. Investors looking for return subsequently spurn the bond market in favor of equities, which drives demand and price up. That said, the recommended allocation remains 100 percent in equities (C/S/I).