Did Bonds Just Peak?
One of my favorite strategists, Jim Bianco of Bianco Research , was on Yahoo Breakout on Tuesday urging caution as he expects more losses to come : A week ago the market was gripped with fear and talk of a "retest" of the August lows of 1100 filled the airwaves. Today, markets are surging and the bulls are giddily predicting a run to S&P 1250, 1300 and beyond. Building on last week's 4.7% gain, the S&P was recently up 2.83% to 1210 while the Dow was higher by 2.26%. Bucking the rising trend, Jim Bianco of Bianco Research says investors should take a "risk-off attitude." While most observers (and investors) focus on the equity market, Bianco is focused on the credit markets, which he notes "continue to worsen" and are "not confirming a bottom in stocks." Clearly, there's not nearly as much stress in credit markets today as in 2008, but Bianco sees similarities between the current environment and the summer of 2008, when