{"id":38861,"date":"2013-06-07T01:38:30","date_gmt":"2013-06-07T05:38:30","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=38861"},"modified":"2013-06-07T01:38:30","modified_gmt":"2013-06-07T05:38:30","slug":"friday-charts-schizophrenic-investors-more-pickups-and-why-yield-matters-so-much","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/06\/07\/friday-charts-schizophrenic-investors-more-pickups-and-why-yield-matters-so-much\/","title":{"rendered":"Friday Charts: Schizophrenic Investors, More Pickups and Why Yield Matters So Much"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

Words mean little on Fridays in the Wall Street Daily Nation<\/em>.<\/p>\n

Instead, I select a handful of graphics to put important economic and investing news into perspective for you.<\/p>\n

So I’ll try to shut up now…<\/p>\n

Another Pick-Up for Pickups<\/b><\/p>\n

Last week<\/a>, I did my best Jeff Foxworthy impression and mentioned that you might be a redneck if you drive a pickup. But you’d be a pretty darn smart<\/em> redneck if you also owned a few hundred shares of Ford<\/strong> (F).<\/p>\n

Well, that’s even truer today.<\/p>\n

Since then, Ford F-150 sales data for May came out. And it looks like the boom times are back for dealerships!<\/p>\n

\"\"<\/p>\n

Ford sold a total of 72,000 trucks in May, which brings the year-to-date total up to almost 300,000. That’s a 21.5% increase over last year – and the highest total since the recession hit.<\/p>\n

As Americans keep buying pickups, is your portfolio built Ford tough? It should be.<\/p>\n

Get a Grip, Would Ya?<\/b><\/p>\n

The summer months promise to bring volatility to the stock market. But investors really need to get a grip on their emotions.<\/p>\n

\u00a0\"\"<\/p>\n

The latest bullish sentiment reading from the American Association of Individual Investors (AAII) dropped to 29.5%. Keep in mind that two weeks ago, it stood at a jubilant 49%.<\/p>\n

So we’re talking about the largest two-week decline in bullish sentiment since the bull market began, according to Bespoke Investment Group.<\/p>\n

And all it took was about a 5% selloff for the S&P 500?<\/p>\n

Again, investors need to get a grip. I get that their risk appetite remains \u201calmost paralyzed,” as UBS Group’s <\/strong>(UBS<\/a>) CEO, Sergio Ermotti, said. But there’s no such thing as investing without volatility. Unless you’re Bernie Madoff.<\/p>\n

I must confess. The contrarian in me rejoices when I see this data.<\/p>\n

As average investors get more and more cautious about the rally, it’s a strong indicator that stock prices are going to head higher still. Bring it!<\/p>\n

Wherefore<\/b> Art Thou, Yield?<\/b><\/p>\n

Yesterday<\/a>, I chastised Bloomberg<\/em> for preying upon everyday investors’ insatiable hunger for income.<\/p>\n

Today, I want to flip the script and share why we’re such easy targets: We\u2019ve watched yields literally collapse ever since the Great Recession hit.<\/p>\n

\"\"<\/p>\n

“In the past six years, central banks around the world have cut interest rates 515 times, increased global liquidity by $12 trillion and crushed bond yields to the point that almost 50% of all global government bond market cap currently trades below 1%,” says Michael Hartnett at Bank of America<\/strong> (BAC<\/a>).<\/p>\n

That’s left investors of every stripe wondering if they can get any income at all these days.<\/p>\n

Sure you can. Just not a lot. Not from the old tried and true investments, at least.<\/p>\n

Now you know why I’m such a fan of merger arbitrage opportunities in this zero-yield world. It’s a proven (but largely overlooked) way to earn short-term yields of 5% to 10% (or more).<\/p>\n

Speaking of which, it appears that one of my recent merger arbitrage recommendations<\/a>, Zhongpin, Inc. <\/strong>(HOGS<\/a>), will close in the next 30 days or so. But fear not, I’m researching several new opportunities and will be in touch immediately once I find a suitable one.<\/p>\n

That’s it for this week. Before you go, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily<\/em> – by sending an email to feedback@wallstreetdaily.com<\/a>, or leaving a comment on our website<\/a>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Friday Charts: Schizophrenic Investors, More Pickups and Why Yield Matters So Much<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Words mean little on Fridays in the Wall Street Daily Nation. Instead, I select a handful of graphics to put important economic and investing news into perspective for you. So I’ll try to shut up now… Another Pick-Up for Pickups Last week, I did my best Jeff Foxworthy impression and mentioned that you … <\/p>\n

Continue reading “Friday Charts: Schizophrenic Investors, More Pickups and Why Yield Matters So Much”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-38861","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=38861"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38861\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=38861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=38861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=38861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}