NB: no updates tomorrow
I thought this post was interesting: https://www.blackrockblog.com/2013/09/25/6040-portfolio-mix/
In particular, the idea that the optimal bond weight in an equity & bond portfolio should mostly be a function of expected bond excess return makes a lot of intuitive sense:
- Japan posted a record annual trade deficit for 2013 of 11.5 trillion yen compared to 6.9 trillion last year.
- German IFO improved to 110.6 vs 110 exp and 109.5 prev
- US New Home Sales declined to 414k in Dec vs 455k exp and 464k prev
- MS: with 31% of the S&P 500 market cap reported, aggregate earnings are tracking 4.5% ahead of expectations. (h/t Jordan)
- BoE’s Martin Weale said “I do not feel terribly enthusiastic about a reduction [in the unemployment
threshold for a rate hike] from 7% to 6.5%.”
- Moody’s left it’s rating on France unchanged with the negative outlook still in place. There have been rumors of a pending downgrade throughout 2014.
- Mon: South KoreaMfg Survey, Australia NAB Business Confidence
- Tue: France Consumer Confidence, Italy Cons. Conf, US Durable Goods Orders, US Consumer Confidence
- Wed: EU Money Supply, Carney Speaks, FOMC
- Thu: GermanyCPI, US Jobless Claims, Pending Home Sales, Japan PMI, CPI