Wall Street Webcasting has prepared and provided for you an exclusive
broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly
recognized for his weekly narrates regarding the fixed income strategy
at Wells Fargo Securities (NYSE: WFC). This week, Rich Gordon
discusses the projected trends in financial markets in 2014, and how the
opposite has been happening so far this year.
The projected trends for this year were higher benchmark bond yields;
continued migration in institutional and retail investors out of bonds
and into stocks; and the U.S. dollar becoming stronger. Gordon states
that both U.S. growth and Europe growth have been disappointing in the
first quarter, with deflation becoming a concern in Europe.
Gordon talks about the declining in yields this year, due to the fact
that there are not enough bonds to go around. In structure product
sectors, investors do not want to sell and take profits because they are
afraid they will not be able to replace those bonds at a later time, in
turn those spreads are getting very tight. The corporate sectors also
have a net supply issue, the demand for bonds feeds on itself and has
been on display for the past few months.
The expectations that the investors had in the beginning of the year for
the macro trends have not occurred. The yields are not higher, the U.S.
dollar did not become stronger and there has been no continued flow out
of bonds into stocks. Gordon points out that the investors are unstable
and “the flush out will continue till the last short gets covered.”
To hear a more in depth explanation of recent trading patterns, and what
other affects the late economic data may have, please tune into Wells
Fargo Securities’ latest video.
Please visit the following link to view the video:
http://www.wsw.com/webcast/wav/
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