the past 24 hours has been a wild one. Enjoy watching your stock portfolio fall 1000 points in a day? I dont! The upside to this crazy action is that mortgage bonds have performed well. With investors concerned about the situation in Greece and other European countries many investors are looking for safer places to put their investments. Mortgage bonds and treasury bonds seem to be where they are going. I think the big swing is over and rates will likely tick up a little next week as the fear subsides and investors see buying opportunities from the market correction.
Up.....Down....Up....Down. I would guess we will see a lot more of this until there is a clear idea on which way the economy goes. We had a good job report today...new hires were about 100k more than estimates, but then the unemployment rate went up to 9.9% which was higher than last month. These reports seem to be in conflict with each other and I am sure investors are still not clear if the worst is behind us or not.
Hold on and enjoy the ride...if you can!
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