My New Blog

How can the fed lower rates and 30yr fixed rates go up .5% in two days.  Investors are pulling their cash and holding.  The market is serverly oversold.  With 30yr bond yields at 4.1, our 30yr rates should traditionally be around 5.25%.  When you can sell something, you lower the price to gain interest.  WELL, the same holds true for bonds.  If there are no buyers, you have to make the spreads(how traders make their money) more appealing to investors so that they will purchase the security.

Some words of advice- patience.  My mentor told me when there is blood in the streets, it's time to buy.  I'm putting extra in my 401k right now because prices are low and there are deals out there.  yes the markets still may go down, but they WILL recover eventually.