Another Look at Nuveen Investments

Nuveen Investments, Weekly Chart

I've noticed that a lot of visitors are interested in my take on Nuveen Investments (formerly known as The John Nuveen Company). Long ago I mentioned in a post that JNC didn't miss a beat after the 9/11 terrorist attacks, and was a clear relative strength leader then. Let's take a look at how things are going at JNC now.

JNC tested its all-time high this month upon the release of the company's second quarter earnings. The trend on the weekly and daily charts is clearly up, but now that the bond market is falling so violently, that test and reverse at the $30 level might mark a longer-term turning point.

It's important to realize that you can't think about Nuveen as a Muni-bond house anymore since their product range is much broader now, but I think that 60% of their asset base is still in bond portfolios, so a rise in interest rates is still their most significant risk.

Nuveen Investments, Daily Chart

When market sentiment is very poor I am interested in buying stocks (see my sentiment-based market timing signals here). In the case of Nuveen, all recent purchases would have been made in the $20 to $23 area. Now that market sentiment is so positive I have no interest in buying JNC or anything else.

10-Year Treasury Note Futures, Daily Chart

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