Historically speaking the day before Thanksgiving is generally a positive day for the stock market. That pattern appears to be skipping over this year due to all of the extreme volatility that remains present in the global financial markets. One interesting development to take note of today is the fact that the yield on a German 10-Yr Bund is now paying 13 basis points over a 10-Yr Treasury. The last time the yields crossed each other like this was in May of 2009.
I can’t predict the future, but this tells me that the world is demanding a higher rate of return to hold German Bunds, which for the longest time throughout this Eurozone crisis have remained a safe haven.
Happy Thanksgiving to everyone!
Eric Marvin, CFP®, CRPC®
JPT112311-1912
