May 5th, 2011 1:08 PM by Eric Fang
Some clients called me about teh rate trend.When I said that the ARM rate hit bottom,it does not mean it will not go down.What I meant is that the rate will not go below2.5%. So there is no much room from the currentlevel.
It reminds the story about the Silver and Gold ETFs.My friend Ming(he is very good at investment) recommendedme to sell SLV last Friday. The reason from him is that"there is not much room for the silver to go upfrom here and $50 will be the top". And I was luckyto have a such good advisor.
Same for the ARM rates, it will not go much lowerfrom here, but if it goes up, it will back to 4% to 6%as a few years back.