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Why the interest rate is much higher?
November 18th, 2016 10:12 PM
The interest rate is at 24 month high after the election. The main reason is that every time Trump administration talked about anything, the market will interpret it as inflation. So for the bond holders, the only thing they will do is sell, sell, and sell. So the rate is moving higher and higher.

All my mortgage publications said that the bonds were oversold. So the interest rate should go down any time in the future. But we need an event to trigger it.

I have a good friend who is a full time stock trader now(just trade his own funds). We used to work in the same company before, and we imagined to be millionaire in the dotcom era. And he joined a company after the dotcom crash, and the company went IPO a few years later, and I instead became one of the best mortgage originators on the market. And we discussed the current market. He mentioned to me that we need to prepare for the recession in the next 3 years. Trump promised a lot, but he may screwed up the economy. And if that happens, the marker will be down a lot. And also, he might not be able to do whatever he wanted to do. Anyway, I sold my bank stocks in my retired accounts. And he said that will try to liquid some stocks to prepare for some "bad time". It might not be bad to prepare early. And we could be wrong, but 15% to 20% gain within one week for the bank stocks are good enough.

I will have another half marathon race this Saturday. Hopefully I can do well.


Posted in:General
Posted by Eric Fang on November 18th, 2016 10:12 PMPost a Comment

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