(As of 7:15 am PST)
Despite
some mildly negative news on the US economic front and another volatile down
day in Japan, US markets are surprisingly strong this morning. Fears of the Fed reducing economic stimulus
anytime soon are waning and Japan’s push into aggressive monetary easing are
making for a continuing easy money go-go philosophy for investors. Japan’s pension funds are eying a switch from
bonds to equities giving markets even more optimism. It looks like a good day all around in US
markets. Gold is up over 1% on a
weakening dollar, while oil is continuing its weekly decline after reports
showed an increase in supplies higher than expectations. One fly in the ointment is the interest rate
on mortgages, which is rapidly approaching 4% on a thirty year loan. This may dampen the real estate recovery a
bit, but it is important to note that even at 4% rates are still extremely low
compared to other periods of time.
Optimism is the order of the day and will likely carry markets even
higher.
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