What do Bill Clinton and Treasuries have in common?
Sorry, if you're looking for an oral sex joke, it isn't here. What Bill Clinton and Treasuries both have in common is the source of their success.
Bill Clinton never won a majority of the vote in either of his 2 Presidential Elections. Did you know that? 43% in 1992 and 49% in 1996. So how did he win? People weren't so much voting FOR Bill Clinton as they were voting AGAINST that "Read My Lips NO NEW TAXES" guy. Folks were so disgusted with the elder Bush that they either voted for the "Little General" (H. Ross Perot - who got 19% of the '92 vote) or they just stayed home.
So it is with Treasuries these days. I can't imagine anyone *really* thinks lending the Government their hard-earned money for 10 YEARS for 2.6% is a good deal. So why in the world are Treasuries skyrocketing?!? Because investors are voting AGAINST the Stock Market. And they have to put their money somewhere, so they put it into "short-term cash", which translates to Money Markets, which translates to Treasuries. Sure, they *could* buy Gold at record highs, or take a chance overseas (Europe? I don't think so. Communist Countries like China, Russia? Not if they read history. Brazil? Ok, maybe), but the "Safe Haven" treasuries, now seemingly safer than ever, seem the only alternative in their vote AGAINST stocks.
I still like GE and COP in this market, but I LOVE TBT & TMV at these levels.