Market Insight
Have you MetChad?
FNMA 4.0% was actually UP 9 bps today...and rates got better at about 1.30pm. Still in the 4.75-ish range for 30 year fixed mortgage money... HUGE Treasury auctions still a
factor. Feds purchased 2.97 billion in treasury notes today... Today there was a $35 billion dollar 3-year t-note auction with about normal foreign participation at 38%. The longer the term of the t-notes being auctioned though: I have noticed that there is less foreign
investment... This indicates that the long-term expectation for the U.S. dollar by foreign investors may not be too rosy. We have definitely been making moves that traditionally devalue U.S. dollars...and therefore ANY stocks, bonds or other instruments in "U.S. Dollars" may be worth less to the rest of the world in the future. The argument: we have become the world's "creditor" providing investment opportunity and a relatively "save haven" currency for the rest of the globe for MANY years. Greed, mismanagement and moves such as the decision to "purchase Treasury Bonds with the Federal Reserve's money" are chipping away at the World's
confidence we have taken for granted for so long. Hmmm...
factor. Feds purchased 2.97 billion in treasury notes today... Today there was a $35 billion dollar 3-year t-note auction with about normal foreign participation at 38%. The longer the term of the t-notes being auctioned though: I have noticed that there is less foreign
investment... This indicates that the long-term expectation for the U.S. dollar by foreign investors may not be too rosy. We have definitely been making moves that traditionally devalue U.S. dollars...and therefore ANY stocks, bonds or other instruments in "U.S. Dollars" may be worth less to the rest of the world in the future. The argument: we have become the world's "creditor" providing investment opportunity and a relatively "save haven" currency for the rest of the globe for MANY years. Greed, mismanagement and moves such as the decision to "purchase Treasury Bonds with the Federal Reserve's money" are chipping away at the World's
confidence we have taken for granted for so long. Hmmm...
Dow was UP 47 points! There is talk of modifying or removing the 'uptick' rule to slow the drama created by short selling in the stock market. Short sellers profit when the stocks they are short selling...deteriorate. SO: they have reason to create false rumors etc to degrade the stock they are betting against. (Feel free to go to chadcan.com and search for short sale to see the way I have explained it in the past.) The link below goes to an article outlining the different ways (FIVE options) the rule may be "re-instated." It essentially acted like a "circuit breaker" before...and worked for 70 years. The market tanked just four months after the rule was
lifted and many feel it has added to the deterioration in our market. The article is interesting. IF something that is acceptable to investors is done: we WILL see money flow into stocks immediately. It will likely have an effect on mortgage bonds and rates could bump slightly...but this is good news if it means that investors are starting to feel more comfortable in the
stock market. It will be interesting to see what happens.
lifted and many feel it has added to the deterioration in our market. The article is interesting. IF something that is acceptable to investors is done: we WILL see money flow into stocks immediately. It will likely have an effect on mortgage bonds and rates could bump slightly...but this is good news if it means that investors are starting to feel more comfortable in the
stock market. It will be interesting to see what happens.
FED minutes from the last meeting were released today and investors always comb
through those lines looking for clues. The notes show that they expect GDP growth to be flat for the 2nd half of 2009 (which is an improvement!) and slow growth for 2010. They lowered their expectation for inflation, raised their forecast for unemployment levels we will see and actually inferred "deflation" was a possibility in the economic future.
through those lines looking for clues. The notes show that they expect GDP growth to be flat for the 2nd half of 2009 (which is an improvement!) and slow growth for 2010. They lowered their expectation for inflation, raised their forecast for unemployment levels we will see and actually inferred "deflation" was a possibility in the economic future.
Gallatin Valley Realtors/lenders/residents: SEE the opportunity to attend a Josh Cormany sponsored event below!
EVERYONE please come to a Greenscool Fundraising event at the space above Thirsty Ear
April 23rd ( www.greenscool.org ) Doors open at 7:30 with Dancing, drinks by PLONK and a film screening on Greenscools last project in Guymas, Mexico. DON'T MISS THIS CHANCE to check out this new venue and support an organization making a difference. Sponsored by Josh Cormany and Metlife Home Loans, Thirsty Ear and PLONK
