(as of 7:15 AM PST)
Markets are recovering from
opening losses. Interestingly, most
economic data has been positive. Leading
the way was a report that 3rd quarter GDP grew at 3.6%, a much
greater rate than previously thought.
Concerns about the bond buying being tapered over the next year are the
main culprit in the initial pullback. A
strengthening economy is bad for the economic stimulus programs that are
fueling investor speculation. Gold is also
feeling the pinch, down almost 2%, giving back all of yesterday’s gains. Big
news is that mortgage rates are on the rise.
30 year rates are near 4.5%, and likely to go higher if bond purchases
are cut back. Oil is up on supply
concerns, with US inventories showing a sharp drop. Investors appear to be looking for
opportunities to take profits. December
could be a rocky month.
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