Newsletter

Today has brought some brighter news to the bond market with figures that could push rates down over the next few days. The overall stock market is "overbought" and ripe for a correction lower. Falling stock prices with the negative news from the tech sector of the market could benefit the bond market over the next 2 days as investors look for a safe haven from an increase in stock volatility. A forecast is on the difficult side today. The bond market has improved yet not enough to move rates as of yet. I am looking for continued improvement tomorrow with enough power to sustain a drop in rate. I hope some of you heard the Fed comments yesterday where they said that the possibilty of a drop in the fed rate was in sight! This would mean lower rates on credit cards, car loans, toys ect. Did you hear that C.A.R. stated that defaults on home loans are at a 10 year high. They are right, BUT they dont take into account that there are more homes now than in 1997 and if you take that into account the percentage is 20% lower now than then. Except for 2004 and 05 we would have a 20 yr low. More Later.