Today's Update!
Mortgage bonds are trading flat today, keeping interest rates the same today as they ended yesterday. The Stock market however is rallying on positive economic news from both Germany and China. Gold rose 11% in January alone, evidencing the increased concern over the economy in 2012. Analysts in looking at the technical signs of both the mortgage bond market and the stock markets, are seeing what they call a "Golden Cross" which is a bullish signal where stocks are more likely to improve and rally over the next months, which could hurt the bond market. Some of the thought is if the economy improves, the stock market will rally. If the economy continues to lag, the Fed is likely to implement QE3 which would most likely cause a stock market rally. Stocks seem to be in a safe position and interest rates vulnerable. We are changing to a locking bias short term and a very cautious float long term. Have a great day
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