"American Recovery and Reinvestment Act" may be ready to roll…all $789Billion worth.
Have you metChad…lately?
FNMA 4.5% : Dead even on the day…rates will likely hold steady tomorrow. This is good news that the bond stayed level today despite a "B minus" rated $21 billion auction of 10-year t-notes. Remember when we have a significant number of bonds "added to the market" it tends to water down values or deteriorate pricing.
Balance of Trade: report suggests that we are only importing 39.9 billion dollars more in goods and services than we are exporting. Balance of trade has been "negative" since the 70's…meaning we import more than we export. Here is a great article to learn more: http://www.investopedia.com/university/releases/tradebalance.asp
DOW: Picked up 50 points…most likely a "bounce" after yesterday's sell-out. "Bounce" is what happens after a major drop in prices when deal hunters purchase at what they feel is the "bottom" for the moment… This purchasing brings a "demand" which can take pricing higher…before settling again.
DJIA 7,939.53 +50.65 NASDAQ 1,530.50 +5.77 SP500 833.74 +6.58
We are getting closer! Soon we will see the "American Recovery and Reinvestment act" hit the streets… The "stimulus" has been pared down to $789billion in commitments and tax cuts and we are hoping it will bring some good with it down to the street level. Remember the $15000 tax break that was "approved" as part of this in the senate? It is looking like it will be a $7500 tax credit but with better rules than the one we have now. More details later. For now: the senate and house seem to agree on this thing at this point (that is why the amounts kept changing) and Obama is ready to sign when that is official.
OIL is at $35.94 while gold SOARS to $944/oz today. Global demand is dismal for "oil"…can't eat gold…but many are looking to put their money into it for now. It IS THE ONLY FORM OF WORLDWIDE CURRENCY we have…for now. Hmmm. Remember: inflation is not only a way of saying it will take more U.S. dollars to purchase the same basket of goods…but it is also a way of saying it will take more U.S. dollars to equal a set number of "OTHER PEOPLE'S CURRENCY." With "worldwide" currency like gold…your return is not subject to "conversion" on some levels. Granted: gold being at $944 and ounce…means it is 944 U.S. dollars an ounce to purchase today. Imagine though if one could have converted ANY one of the currencies that have experienced "HYPER-INFLATION" over the last 10 years into gold…it may have been a safe place. Of course: that is counting on the idea that gold will remain desirable to the rest of the world… Again: we can't eat it. For ideas on what to do with your own investment portfolio: PLEASE schedule time with your investment advisor for an up-to-date checkup.
Have a great eve!
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Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
