Super day today.
Bonds had a strong day today and our FNMA 4.5% bond was UP on the session by 28 basis points. NICE news for the interest rates. However here is a flashback to 1985 or so in the mortgage biz: some guy driving a Chrystler K car and wearing a "member's only" jacket is saying something like..."if only we could get the rates down to 11% again...we could sell some homes!"
Remember: rates don't buy or sell homes...people do. (I realize that sounds a little NRA.)
YOUR personal belief that this is the best time to buy or sell is what will illuminate your personal and present opportunity. Relish each exchange with your clients and professional relationships as opportunities to share this feeling. Is anyone else feeling bombarded by the news suggesting we should all buy gold and bury it in a coffee can somewhere?
Speaking of:
gold topped $1050 and ounce...and ended the session at $1043/oz. GEEZ. People will PAY for security and there is obviously money out there. (See above: People are not buying a commodity...when they buy a home.)
Dow is UP 6 points today and inching toward 10,000 again.
Earnings reporting season for the third quarter is upon us and we already have some good news that will be friendly to the Dow: we're seeing profits. The dollar also picked up some steam against the yen so it may be time for the equities market to make another run up depending on what is reported over the next few weeks.
Finally for those interested: Currency is 3 dimensional in it's "value". 1. Value is placed on the "historical" stability of the currency. No one wants dollars that will be worthless when you need to trade them for goods or services...or convert them back into your "native" country's currency. 2. Value is placed on the current standing of the currency when standing next to other currency in the marketplace. (Dollar vs. the Yen vs. the Peso vs. the xyz currency.) 3. Value is placed on the PROJECTED value of the currency based on current domestic policy or other factors that would have an effect on its "value." In other words: currency ghosts of past, present and future.
