The weekly Market Update is posted at Alpha Baskets and includes the following;
During the financial crisis we all learned a lot about the financial health or lack thereof for the states with pension obligations being a big driver in many instances. One of the weakest states was revealed to be Illinois and things have not improved, arguably they have gotten worse. Standard & Poors and Moody’s both cut their ratings for the state to one step above junk which is the lowest rating ever for a state. Although Illinois has pension issues it also has had trouble passing a budget. New Jersey is another state on relatively shaky ground. It used to be that investors were thought to be better off buying general obligation bonds but this pivoted in the financial crisis to favor revenue bonds and for many investors that is still the belief.
Please click through to read the entire update.
One of my favorite Trophy Truck pictures.
Taken last December in Los Angeles
At Capitol Reef National Park in Torey, UT last October.