Hey there!
I am heading out into the great wide open for a few days to catch some quality time with my family. I had a great talk with my partner and friend Sherrie Kitto today who pointed out that there are so many things we seem to "seek out" that can distract us from what is really important. It can be things like clothes, money, cars, meaningless relationships or others that can bring a temporary rush followed by an unquenchable desire to get more. Things that mean the most bring a sense of completion and tend to slowly grow in our soul to take a permanent place in the best part of who we are vs. a quick elation.
I have mentioned it before but we are all so much more than just what we do for a living. What a joy it is to step back and realize that we are all here living and breathing in a country with the wealth and health that we are in. I have seen so many poignant emails about the situation in Haiti that helps me to realize that fact.
Depth in relationships is best though it can lead to vulnerability. Caring is best though it can lead to disappointment. Thank someone today for your success as a human being as I thank you.
Market
FNMA 4.5% is UP on the day about 19 bps and rates are steady. We were up quite a bit more than that earlier in the session and there is still about 2 hours of trading left to go.
Oil is continuing to decline ($77/barrel) on news of a stronger dollar. I haven't quite figured that one out yet. Some are thinking the perception drawing up the value of the US dollar is the idea that the health care bill will not pass (anything that smells like massive government spending is not good for a currency) and others are feeling like the gains in the Dow are suggesting a greater confidence in the economy. (Remember when we were down in the 6000 point range early last year in the Dow?)
Dow is DOWN some today after yesterday's gains but still in a good position at 10,579 points.
Building permits were UP for the month of December though housing "starts" were down. Some are saying that the cold weather is to blame for the fall in housing starts. A housing start is when the "hole is in the ground". Permits being UP is good news. Remember though we need to balance supply vs. demand by controlling inventory so the decline in new home construction has actually been good over this last year with so many fewer buyers on the market despite government effort to ramp them up.
China is thinking of raising its key interest rate. This suggests to the World that they feel they are in a position of stabilization and after last months continued upward trend in manufacturing numbers reported this is not a huge surprise. The guess it that they will raise their rate just over 1/4% higher.
Our fed funds rate is still in the 0 - 1/4% range and has been there since last December. When our funds rate is finally raised it will be a sign that the economy is heating up. A higher funds rate means that getting a hold on US funds will be "more expensive" which gives the dollar more perceived value.
Well, this will be my last entry for at least a few weeks. Have a great weekend and I will hope to see you or hear from you soon!
Cheers,
