NEAR ZERO RATES FOR SOME TIME TO COME!

This Paul Krugman (NY Times) blog piece this morning i think is actually worth a read since at least Mr Krugman is talking about economics this morning and not about his far left wing politics. I think he makes an interesting point here and argues that given the bleak outlook for the economy, we can forget about the bond bubble. Unless something unforseen happens (and it might) long term rates are going to reflect a zero interest rate enviornment for some time to come.


If we use the CBO forecast we're talking at least another 3 years. Now think about this. If long term rates are going to stay below 3% percent for the next 3 years and MLPS can grow their distributions by 2% a year for the next 3 years (not unreasonable), MLPS could enjoy bull market conditions for sometime to come. The short term chart is holding support. The dow chart does not look as good as we are below support again and we may come back down to the bottm around 9700. And we're in the last 2 weeks of August which usually means pretty boring trading on low volume.

The news front is pretty quiet this morning. We have no corporate headlines for MLPS and no upgrades or downgrades so far. Stock futures start the day higher. Energy is higher as well. Lots of M&A this morning giving the bulls some gas but not sure how long it will last beyond the open.

Moving daughter number 2 back to school so i will be posting from my phone when i get the chance.