Saturday, June 12, 2010
Just one reason I'm staying out of the equity playground right now.
As you can see from the chart above the TED spread has started to turn upwards after spending all of 2009 in a steady decline. You can play with the graph at stockcharts.com if you want to zoom in or change the indicators. While the TED spread is currently below the elevated levels of early 2008 it has been consistently rising since late April 2010. This rise also lends credence to the feeling many have (including myself) that this correction is different than all the others we've had since the March 2009 lows.
Until the TED spread takes a rest from its ascent I'll most likely be watching the stock market from the sidelines.
edit: stockcharts.com does not show the TED spread in real time. You can watch it real time here: http://www.bloomberg.com/apps/quote?ticker=.TED%3AIND