John R. Mousseau, CFA quoted in…

The Treasurys Market Is Getting Squeezed From All Sides

By David Uberti – The Wall Street Journal – May 02, 2024

Excerpt follows:

Pressure keeps building in the bond market. 

Stickier-than-expected inflation this year has boosted yields on U.S. debt enough to dent the stock-market rally. Soaring spending by Washington shows few signs of slowing. And the latest plan to finance it all promises a flood of Treasurys in the coming months that will need to find buyers.

Those factors are forcing investors to ditch some of their optimism from early this year and reopen their playbooks for a world of higher yields.

All three major indexes have fallen at least 4% over the past month, with declines ranging from high-growth tech companies to firms prized for steady dividends. The Russell 2000 index of smaller businesses has dropped even faster.

“That tells me investors are starting to get more defensive on equities and the economy in general,” said John Mousseau, chief executive of the investment firm Cumberland Advisors. 

The shift stems largely from a U.S. economy that has defied expectations by creating jobs, bumping up wages and buoying Americans’ ability to spend despite higher borrowing costs.

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Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.