After one made a bad move in checkers, putting oneself in a hole and finding oneself in a most untenable position, Tom Wiswell, would look at one, somewhat sadly, nodding his head with a frown, "Now you're thinking". (why didn't you think a few moves ago). Okay. The bonds have gone down 6 days in a row and the stocks up 7 days in a row. A nice six percentage point divergence to another new high in the bond stock ratio. Today, I sought to sell bonds after they went up a little. I can hear Tom saying "Now, you're selling". I bought a little stocks overnight. And I hear Tom saying with reluctant disapproval "now you're buying".





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1 Comment so far

  1. wyk747 on March 12, 2013 11:42 pm

    Dear Vic,

    If you look at the EUR/GBP and Gilt Bund Spread. There are constant changes in the value. When their behavior from divergence to convergence, or vice versa. It usually precedes a big move. (Well for obvious reason of the so called euro crisis) I dont knot your take on EUR/GBP but as of now since the rating dudes downgrade the gilt I believe its a good buying opportunities due to margin call and this might precede the big converge of gilt-bund.

    This also could correlate with a decline in the EUR/GBP play. May I have your thoughts on that?



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