Photo: Wikimedia Commons
In the end, it wasn’t such a horrible quarter, and for the moment nobody is too freaked out about the end of QE2.But first, the scoreboard:
S&P 500: +13.51
And now, the top stories:
- Basically, things got really quiet in the post-Greece-austerity-vote world today. There was no drama in Europe. Greece did pass its technical vote to implement austerity, but everyone knew that was coming.
- As for markets, it was all about follow through for the Treasury selloff, and the rally in stocks. Suddenly, the highs of the year aren’t even that far out of reach int eh US. It is pretty remarkable. Helping things along was a very solid Chicago PMI report. Suddenly, more and more people are talking about a re-rebound after the soft patch that started in early Spring.
- There was a ton of talk about the end of QE2 and the end of Q2. The big Treasury selloff has some people thinking that the Bill Gross thesis — bonds tank after the program is over — might be correct. Others simply think that the big selloff in Treasuries had more to do with portfolio balancing — institutions selling some of their winners for the quarter (bonds) to fill up on losers (equities). Either way, a few big clouds are lifting for the moment (Greece, Japan, etc.) and that’s prompted a bout of risk tolerance.
- Meanwhile, for a look into the future, see the worst housing markets for the next 5 years >