AM 1150 Kelowna - Radio Rallies & Reversals

'Sell in May, go away' is looking like wise advice right now. So where to for stocks from here? One indicator that's worked 14 out of 15 times between 1965 and 2007 is the direction of 10yr government bond yields. Between Jan and May, when the 10yr U. S. treasury yield falls, the S&P500 is up between May and October. When the 10yr U. S. treasury yield rises, the S&P500 is down. Which way has the 10yr yield gone in Canada and the U. S. since January? Down. What could be the catalyst to jump start stocks? Strong ISM numbers and a strong Q2 earnings season.

GB