- The U.S. stocks rose after the postive economic reports that gave investors more reasons for optimism about U.S. growth. This gain in stocks came after decrease in the Treasury bonds.
- General Motors issued a recall for about 1.5 million vehicles because of a steering defect.
- Apple increased by 0.1% as it was in talks to buy Japan’s Renesas SP Drivers, which makes power-saving smartphone chips, for around $1 billion.
- Goldman Sachs edged up 0.7% as it is close to selling a trading business based in New York.
- Google splits into GOOG and GOOGL. Shareholders will get two shares for every one they owned. One set of shares , called Class A, will trade under GOOGL while the other, Class C, will be listed under historic ticker GOOG. Votes of Class A will be counted as one vote while Class C will be worthless in terms of voting.
- The first quarter of this year was busiest since 2000. 64 companies went public in the U.S. and raised $10.6 billion. Around 50% of the IPO’s were from healthcare sectors. Technology firms were active as well. Companies such as Box Inc., Go Pro are also expected to go public.
What can we do? We can buy 100% TLT bonds, which means fewer risks,less volatility and fewer gains. Also, we can buy 100% TMF bonds which entails nore risks. Thus, a balanced combination of TLT and TMF bonds is another option.