Mortgage Blog

Added more WFC today. I think this stock is still
under-performed compared to JPM, MTB, USBank.
BAC is cheap, but still has some risks.
So according to Buffett's theory, still not to
touch it at this moment and keep all the current holdings.

Builder stocks is very strong, including HD.
And I was surprised that KBH was up 10% for the last two days.

Current strategy is that I will accumulate more bank stocks
when they are low, especially AXP, GS, WFC and JPM.
Their balance sheet is very good. In today's news, JPM said
that they have too much cash, tehn why not buy back the
stocks, or issue more dividends?

The rate stuck in the range. It might be short term bottom.
30 yr fixed rate bottom rate was raised to 3.375%(lucky
if we can still get 3.25%), 15 yr fixed raised to 2.625%.
It is the trend that the interest rate will go slightly higher.
We should change our perspective that we need to invest
the money to wherever it can generate more money.
We don't have spend too much time to the rates of 0.125%
lower. Even Warren Buffett changed his investment. He used
to purchase the discounted stock with higher values, and
work out or wait for a turn around. And for his late investment
career, he changed to be able to pay some premium to acquire
business with good management with great growth potential.