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What the current market tells us
December 8th, 2010 11:06 AM

Everyone is so surprised by the rate jump yesterday and the
past a few days.

So we expected the higher interest rate, but not that higher
as in today's ratesheet.

Usually bond traders know more about the market than stock
traders, though some do trade both.

Bill Gross from PIMCO did suggested the risk investment
in bonds in the Run Turkey, Run. But the Fed purchase
should offset some private investor's selloff.
Even though, some traders on the market believe the inflation
in the future, Fed is more concerned with deflation so far.

But the economy overall is doing better this year and 2011.
But the unemployment rate will stay high and the RE market
recovery still  a few years away.

As we discussed in my blogs before:
1)If the rate goes up, if goes up fast even in a few days.
When the economy confirmed growth, the rate will not go lower
any more.

2)When we choose loan programs, just remember the day of
higher rate will be coming.

3)Refiance will not make us money. It will only save us money.
Please don't just focus on the Refiance. This is just
part of your finance portofolio. The other investments will make
your more money.

4)We should think about how to hedge the inflation(suggestions
are welcome).

5)Investment in the career and the family is the best way to manage
your wealth. Only those investment can generate positive returns.
I know someone spent a lot of time on stocks, on RE. The more time
you spent, it can not guarantee you make more money.

When the rate goes up, I am not scared. I can read more books
while higher rates and we all know, the rate can go back again,
though it may take another 2 months now.


Posted in:General
Posted by Eric Fang on December 8th, 2010 11:06 AMPost a Comment

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