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Because they both can’t be right.

The major averages begin the week with small gains on little real news. Los Angeles area port traffic was unchanged in June. That said, it appears that the steady decline in loaded outbound containers or exports begun in mid-2014 has finally leveled off.

The NAHB, or National Association of Home Builders, confidence index slipped a point to 59 in July. All three of the internal components declined, on a regional basis the Western region gained a point, the other 3 were all unchanged.

Given the new record stock market highs of late, one could easily assume that the economy was on fire, high investor confidence in the future and stability. Conversely, bond yields hit new record lows of late as well. Generally, this is an indication that the economy is on the edge of ruin. Low investor confidence and a flood of nervous risk adverse investors seeking the safety of bonds. The thing is that they both can’t be right, either stocks are or bonds are. Make the wrong choice and it will prove a costly mistake.

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Rebroadcasts, additional writings and other entries are also available on my Blog at www.clinvestments.com.

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.


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