A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
The U.S. 10 year Treasury bond yield is approaching 3 per cent for the first time since the end of 2013, and this presents a different market backdrop for all investors. Bloomberg helpfully surveyed strategists for tips on how investors can navigate the trend in their portfolios,
"Strategists at RBC Capital Markets note that since the financial crisis, value stocks have outperformed when the 10-year yield is on the rise, while growth has won when yields are falling. That relationship has broken down in recent months, but may return, according to RBC's Lori Calvasina. JPMorgan Chase and Co. and Goldman Sachs Group Inc. are among banks predicting a rebound in the value style. Energy, materials and financials shares are positively correlated with 10-year yields and inflation expectations, suggesting they should lead in a rising rate environment, RBC says."
"@SBarlow_ROB Inflation/higher bond yield winners bloomberg.com/news/articles/… " – Twitter
"A Global Investor's Equities Playbook for Rising Bond Yields" – Bloomberg
"The most important chart right now for determining where to place your market bets" – Barlow, Inside the Market
Motley Fool went through Berkshire Hathaway's regulatory filings to identify which companies Warren Buffett is buying and selling,
"Berkshire bought more than 31.2 million shares of Apple, and although we don't know the exact price Berkshire paid .. The company added 2 million shares to its U.S. Bancorp stake and another 10.6 million shares to its Bank of New York Mellon investment… Berkshire also increased its Monsanto investment by 31% and now owns 11.7 million share."
"Here's What Warren Buffett Is Buying and Selling Now" – Motley Fool
"Buffett's Bumpy Ride With IBM Draws to a Close With Stock Sales" – Bloomberg
Oil prices are showing renewed strength despite endless media coverage of increasing U.S. supply,
"'With the weak dollar and the rallying stock markets it is no surprise oil finished the day significantly higher" on Wednesday, said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London. Oil had been struggling to recover to levels seen before last week's plunge as investors are wary that OPEC's strategy of curbing output could backfire and lead to a resurgence in U.S. shale production. While stockpiles in developed nations have shrunk to the lowest since 2014, supplies still remain about 52 million barrels above the five-year average."
"Oil Trades Near One-Week High as Stockpile Gains Slow Down" – Bloomberg
"Oil slips towards $64 as U.S. output, higher inventories weigh" – Reuters
"Crude oil higher but correction risks remain" – Saxo Group
Tweet of the day: "@kitjuckes Replying to @darioperkins @econbuttonwood The worrying bit is that it's a fine line between money heading off to sexier places where returns are better, and an unsustainable 2006-style bull market that will end sooner rather than later in a horrible mess. "- Twitter
Diversion: "The 25 best photos of the Winter Olympics so far" – Business Insider