By Richard Suttmeier
Treasury yields may be rising slightly, and gold prices and utility stocks may have stalled. But "flight to safety" investments can still outperform.
The yield on the 30-year U.S. bond began the second half of 2016 trading to a record low of 2.089% on July 11. The second-half high has been 2.360% on July 21. Friday's close was 2.272%, closer to the high end of the trading. This week's value level is above the range at 2.428%. Annual and quarterly pivots are 2.265% and 2.150%, respectively, with a monthly risky level of 1.931%, which would be a new all-time low if tested.
Investors can trade the U.S. Treasury 30-year bond like a stock using the 20+ Year Treasury Bond ETF (TLT) , which is an exchange-traded fund backed by a basket of U.S. Treasury bonds with maturities of 20 years to 30 years. As a stock-type investment, it never matures, and interest income is converted to periodic dividend payments.
Comex gold futures set their second-half 2016 high of $1,377.5 on July 6, then sank as low as $1,305.5 on Sept. 1. This week's value level is $1,298.4, with this month's risky level of $1,474.1.
Investors can trade gold like a stock using the SPDR Gold Shares ETF (GLD) , which is backed by gold bullion.