Discuss Market Comments 01/25/11

Follow through - Stocks rallied impressively yesterday on mild volume as the Dow gained 108-points making a new 2.5 year high, but again the other indices lagged slightly...

Market Commentary for 1/25/11

Current Daily Market Commentary

 

[ozzyman]

so F fund went up .06% even though agg fell -.06%? I'm confused....

 

[tsptalk]

Hey ozzyman. The AGG is just an ETF and the while it and the F-fund are basically tracking the same thing, the price and yield performance of the total US investment-grade bond market, they don't track each other and won't always match on a day to day basis. For one thing, the bond market closes an hour earlier than the AGG stops trading, and there could be various reasons for a difference on any given day. But in the long run, they will basically match.

I actually prefer to watch the bond yields to get an idea of how the F-fund may turn out. Of course the yields move in the opposite direction of the AGG... http://finance.yahoo.com/indices?e=treasury. It is not exact, but the up/down direction is usually right on. Yields up, F-fund down, and vice versa.