Monday Morning Musings
Back in the saddle after a restful weekend? Not. But who's complaining?
The market is getting a bounce at the open courtesy of an announced cease fire between Israel and Hezbollah. That is sending safe-haven investments like gold lower on the session. Oil is also falling, due to the downtick in terror premium coupled with the news that BP is going to keep the western half of its Prudhoe Bay oil pipeline open.
Bonds are also selling off, pushing the yield on the 10-year up to 4.99%. Retail stocks are the strongest so far, followed by industrials. Energy and materials stocks are off the most.
I still think that the oil service stocks are too low, especially given the strong earnings they reported. I would be looking to trim my exposure to the big integrateds and hold on to my service stock exposure, or even add to it.
I also think that the broker stocks are undervalued here, and remain perplexed at the low multiple afforded to these great companies.
This week is options expiration, so expect some added volatility to the usual nuttiness.