By Jim Dondero | October 19, 2015

  • Stocks had another decent week and continued their advance off their October lows. Stocks continue to face significant areas of resistance just overhead (such as 2,050 on the S&P 500) which — if surpassed — would likely kick-off the traditional Christmas Rally.
  • The potential success of US equities will likely depend on the credit markets. An easy way to monitor this is by tracking the HYG/TLT ratio, which measures the market’s appetite for high yield debt as compared to US Treasuries.
  • Should interest rates in general stay “lower for longer,” it could likely benefit gold, which often struggles in a high, and/or rising interest rate environment. Gold has now broken back through the key $1,150 area, which was an important level on the chart.
  • Finally, overseas markets continued to improve, with even those in Russia & Brazil bouncing. That being said, those in Europe and Japan remain in established up trends, and we believe are now offering very nice buying opportunities.


The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results.