Seeking Alpha
View as an RSS Feed

Eric Parnell, CFA  

View Eric Parnell, CFA's Comments BY TICKER:
Latest  |  Highest rated
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello jhooper,

    Brilliant comment as always. You make a ton of excellent points and this your comment here is precisely why I am a follower of your commentary. Thanks for sharing your thoughts and perspectives on this article.
    Jun 13, 2013. 09:54 AM | 1 Like Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello 436020,

    Thanks for your comment and for including Bob Farrell's 10 Rules here on this article. I have spent a great deal of time revisiting these rules over the last few months, as they are always important to keep in mind during periods of market stress in either direction. I've included a link here complements of Stockcharts.com for those that are interested in taking a look.

    http://bit.ly/140wr1F

    Thanks again for your comment. I appreciate it.
    Jun 13, 2013. 09:51 AM | 1 Like Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Thanks Economic Analyst. I appreciate your comment.
    Jun 13, 2013. 09:45 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello Visitgoth - Thank you very much for your comment and your very kind words. I genuinely appreciate it.
    Jun 13, 2013. 09:45 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello Reven,

    Thanks for your comment. This is an interesting point that I am going to revisit based on your question. Typically, a strengthening yen has been fairly positively correlated with strength in U.S. bonds, but this is clearly not the case at the moment, which I believe is due to the forces that are driving liquidation right now. Very good question and one that I will explore further.

    Thanks again.
    Jun 13, 2013. 09:44 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello PSW,

    Thanks for your comment and for raising an outstanding point about PFF. Going all the way back to prior to the financial crisis in 2007/2008, I have long monitored weakness in Preferred Stocks and High Yield Bonds as important leading and coincident indicators of real stress in the financial system and a potentially sharp stock market decline. As a result, the recently sharp decline in PFF is a deeply troubling signal for the stock market in the days and weeks ahead. To this point, the last time we saw comparable weakness was summer of 2011, and the stock market quickly dropped by -15% in a matter of days.

    Outstanding point and thanks for raising it.
    Jun 13, 2013. 09:38 AM | 1 Like Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello Tony,

    Thanks for your comment and for your excellent points as always. I completely agree - if interest rates continue on the rise, particularly if it appears that the Fed has lost control over the bond market, the pain in the long-term bond market will be particularly acute. Excellent point.

    Thanks again.
    Jun 13, 2013. 09:33 AM | 1 Like Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello garywealthifi - Thanks a lot. I appreciate it.
    Jun 13, 2013. 09:32 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello fishfryer,

    Thanks as always for your comment and for sharing your insights. The decision to exit bonds a few months back has clearly served you well in avoiding the recent pullback. And MLPs have certainly held up well relative to many of its interest rate sensitive counterparts to this point. Hopefully they will be able to sustain this relative strength and avoid the volatility.

    Thanks again for your comment. I appreciate it.
    Jun 13, 2013. 09:32 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello bd4uandu - Thanks as always for your comment. I appreciate it.
    Jun 13, 2013. 09:27 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Thanks kongen1 - I appreciate it very much.
    Jun 13, 2013. 09:27 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello Edit or perish,

    Thanks for your comment. I appreciate it. It will be interesting to see how long this current wave of selling continues, but some attractive opportunities are likely to open up along the way. I have been monitoring the TIPS market in particular for potential reentry points. And Build America Bonds (BAB) got hammered yesterday afternoon despite no real fundamental news that should have sparked the sell off. The asset class may go down further, but it is looking increasingly attractive with a 5.12% YTM and an average credit quality in the AA/A range.

    Thanks again for your comment.
    Jun 13, 2013. 09:27 AM | Likes Like |Link to Comment
  • The Death Of Bonds Is Greatly Exaggerated [View article]
    Hello Sanjay John gandhi,

    Thanks for your comment. This is an excellent point and you are correct, as the interest rate on U.S. Treasuries relative to many of its global developed country alternatives continues to be attractive. And despite some of the fiscal challenges currently being faced in the U.S., it is still the destination of choice for capital during times of extreme uncertainty.

    Thanks again for your comment.
    Jun 13, 2013. 09:18 AM | Likes Like |Link to Comment
  • The Asset Class Serial Killer: Who's Next? [View article]
    Hello Gerry,

    Thanks for your comment. I've been meaning to reply, as your comment inspired a variety of thoughts on this front. My next article will hopefully address many of these issues.

    Thanks as always for your comment.
    Jun 11, 2013. 10:13 PM | 1 Like Like |Link to Comment
  • A Major Market Turning Point May Be Struck Next Week [View article]
    Hello billrosser,

    Thanks for your comment and I think that you are right. Any allocations to stocks or bonds should be viewed with short-term time horizons, as we continue to operate in an environment where either stocks could correct dramatically and/or bond yields sharply rise. The critical question is exactly when this is likely to happen, although I currently believe that the downside potential in stocks exceeds the upside potential in bond yields at least for the short-term. This is due to the fact that the underlying forces dogging the global economy continue to be deflationary, which is positive for bonds. But at some point, bond yields are going to rise sharply higher, and it will be important to get out of the way. And if indications start to emerge that the Fed has lost control of the bond market, this process may be underway sooner rather than later. The next few days and weeks will be telling.

    Thanks again.
    Jun 11, 2013. 09:27 AM | 1 Like Like |Link to Comment
COMMENTS STATS
2,707 Comments
3,068 Likes