Even though the market is closed for the day, interesting story over on The Street by Marc Lichtenfeld and two points stand out to me:
1. According to the 2006 Stock Trader's Almanac, $10,000 invested in the Dow Jones Industrial Average on Nov. 1 and sold on April 30 of every year going back to 1950 would net the lucky investor nearly $490,000 for an average 7.9% return. Meanwhile, $10,000 invested and sold during the opposite time frame (May 1 to Oct. 31) would have lost the investor $502. So much for the idea that stocks always go up over the long term.
2. Regardless of the calendar, interest rates appear to be headed higher. John Roque, a technical analyst with Natexis Bleichroeder, expects the yield on the 10-year Treasury note to hit 6%. On Thursday, the benchmark note's yield rose above 5% for the first time since mid-2002, settling at 5.05%.
Maybe it's time to take another look at bonds and Treasuries....