December 8th, 2010 11:06 AM by Eric Fang
Everyone is so surprised by the rate jump yesterday and the past a few days.
So we expected the higher interest rate, but not that higheras in today's ratesheet.
Usually bond traders know more about the market than stocktraders, though some do trade both.
Bill Gross from PIMCO did suggested the risk investmentin bonds in the Run Turkey, Run. But the Fed purchaseshould offset some private investor's selloff. Even though, some traders on the market believe the inflationin the future, Fed is more concerned with deflation so far.
But the economy overall is doing better this year and 2011.But the unemployment rate will stay high and the RE marketrecovery still a few years away.
As we discussed in my blogs before:1)If the rate goes up, if goes up fast even in a few days.When the economy confirmed growth, the rate will not go lowerany more.
2)When we choose loan programs, just remember the day of higher rate will be coming.
3)Refiance will not make us money. It will only save us money.Please don't just focus on the Refiance. This is just part of your finance portofolio. The other investments will make your more money.
4)We should think about how to hedge the inflation(suggestions are welcome).
5)Investment in the career and the family is the best way to manageyour wealth. Only those investment can generate positive returns.I know someone spent a lot of time on stocks, on RE. The more timeyou spent, it can not guarantee you make more money.
When the rate goes up, I am not scared. I can read more bookswhile higher rates and we all know, the rate can go back again,though it may take another 2 months now.