November 7th, 2012 1:02 PM by Eric Fang
It's very normal when the market is up or down. The market has to take a rest when it wentup too much or too fast.
It's the same as for the interest rate. It has to godown when it went up too much. That's why I collecteda lot of applications when the rate was high and Ilocked most of the loans recently.
The market should be back to normal in a few days.Don't think it's bad when the market crashes.we can pick up some more good stocks as long as theus economy is on the up trend.
But some people are nervous,like my previous CFP.He managed my account for about 3 years, and he hasthe ability to make the performance all negative.This year he purchased SLV at $35 and sold it at $26. I explained to him that I am familiar with this ETF forabout 8 years and it is insane to trade like this.With QE3, we don't have to worry about equities. Andhe was nervous and made such a silly trading.For myself, I only made 5 trades, and the returnis over 20%(I think I am better than at leastone professional)
A few borrowers sent me emails about the interest ratestoday, they expected much lower rates, but the realiztyis that rate is a little bit higher than Monday. Why? Even though a lot of people purchased bonds today, but only small portion on MBS. MBS will determine the interest rate,and one of the biggest investor now is Fed.