1. Middlebury College SIC Economic Advisory
February 27, 2013

2. S&P 500 for Today Closed

3. SIC Portfolio

4. Portfolio Pops & Drops Added at $20.45 – US Steel (X), up $0.34
GOOG flirts with $800 once again
CMI up 2.11% on the day
ABV down 2.14% on the day

5. Top News
US Durable Goods Orders (ex Trans.) Climb most in 1 year → Suggests business investment is continuing.
PIMCO’s Bill Gross “Corporate Bonds Irrationally Priced” Suggests TIPS.
Bond sales slow to lowest rate since 2/2008

6. Top News
Italian Government still not formed, battle among the 4 way electoral split looms. It is unclear what coalition will emerge.
The US Federal Budget Sequester Saga continues…

7. Top News Chairman Bernanke Testifies to Congress for a 2nd Day
Advises against the sequester, sees detrimental growth/employment effects.
No signs of slowing the pace of asset purchases - about $85 billion per month. Many assets will be held to maturity.
“Until we can get greater forward momentum, we are not going to be able to see sustainable higher returns”
Interest Rates may rise to 6% by 2016
The 10 year note yield ended the day at 1.90%

8. Cuts in Government Spending?
They’re already happening!

9. Data Sources
Bloomberg Finance L.P.
Yahoo! Finance