December 4, 2012 -- Global Perspective (Risk/Yield) for January 2013
As noted in the Global Risk/Yield for December 2012 (link), there are countless issues that are making for a worrisome global environment and hence less stable footing for economies worldwide.
Between the December 2012 and the January 2013 Risk/Yield, Core drops below the equilibrium of 0 and moves into risk in December 2012 and stays there until January 2013 and then, moves into yield. An assumption is that some type of deal has been struck for the fiscal cliff in the US but, it could also be one of the many other unresolved issues around the globe that "is handled".
Important point is that while there may be a down period (Dec/Jan), it is relatively short and there are indications of a nice bounce-back for the last part of January and most of February and the transient also picks up into yield in February 2013. Without going to far into 2013, let's take a quick look at the core dip into risk in March — some indications of a building storm (debt ceiling?) and the transient is rising in yield at that point so expect conflicting signals on economies.
Expect the next Global Perspective update in January 2013.
Disclaimer Reports are provided for information purposes. These reports/graphs do not constitute a recommendation to buy, sell, or hold any security. You are fully responsible for any decisions, investment or otherwise, you make and such decisions are based solely on your circumstances and objectives.
Copyright Issues All attempts are made to ensure that our material is properly sourced by including links to original material. We are in the process ofsecuring rights for 5 stock price graphs from Yahoo's financial web site. If you are aware of a copyright issue on this website, please send an email to email@example.com.