January 30th, 2013 12:33 PM by Eric Fang
If you check the 10 yr bond history, it went higherin March-April of last year. And the rate went backagain.
So first, I will expect the stock market has a correctionafter the earnings season is over; and the interest ratewill go back lower at least another 0.125% to 0.25%of the interest rate. This is the opportunity to lockthe rate again. Will the rate go back to previous lowrates? Most likely not. We saw crying wolf comingfor a long time. It will come some time.
As we predicted before, the interest rate will go upthe 2nd half this year. And we will see this patternall the year around: the rate will go higher suddenlyfor 0.25% to 0.375% rate, then go back to 0.125% to 0.25% rate lower; and then go higher again.
And you will not regret for nay rates you lock this year.