“Time flies over us, but leaves its shadow behind.” – Nathaniel Hawthorne
For now, I’m unconvinced that stocks are out of the woods yet.
Last week, markets rallied strongly, and the unrelenting streak of consecutive up weeks following the December lows continues. At this pace, we’ll hit new all-time highs in March. My problem with the move is that Utilities and Treasuries are not breaking down. Utilities historically show near-term strength when conditions favor higher volatility. While weaker last week, performance has not been as weak as one might otherwise expect.
On the longer end of the Treasury curve, long duration Treasuries are still holding against intermediate.