Chief Market Strategist Tony Dwyer of Canaccord Genuity is following three indicators in the credit market to signal an opportune time to buy stocks again.
The credit market indicators Dwyer is closely monitoring include the US Treasury yield curve, business loan demand, and the Chicago Fed National Financial Conditions Subindices.Chief Market Strategist Tony Dwyer of Canaccord Genuity outlined in a note on Monday the three credit indicators he is following to help pinpoint when might be a good time to start buying stocks again.
"On April 9, the Fed showed they were willing to do what it takes to prevent a full-blown credit crisis that likely takes the worst-case scenario off the table," Dwyer said.1. "The US Treasury yield curve remains too flat." Because of how low the two- and 10-year yield spread is now at 43 basis points, investors shouldn't expect a V-shaped recovery until that spread steepens closer to 200 basis points, which is the same spread that marked the end of the recession in 2001 and 2009.2. "The surge in Business Loan Demand still suggests further corporate fear."
In November, obviously.
Indicators tell you late and are created to give people false hope. If you could actually use indicators to make consistent profit and then everyone would do it and everyone would be profitable wouldn’t they? Just their to give people false sense of security.
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