Mortgage Rates Top 4% in Test for Housing

Mortgage rates extended above the 4% threshold last week in concert with an increase in the yield on on the 10 year treasury.  Investors are demanding high yields on the 10 year treasury as they anticipate an increase in the Federal Funds rate.  Time will tell what impact these higher mortgage rates will have on  Read more ➝

Home Sales On The Rise

Share prices of Home Builder KB Homes soared 8% after a better than expected earnings report.  Chief Executive Jeffrey Mezger said there was more demand from would-be home buyers in the first quarter than a year earlier. The company sold nearly 20% more homes in California last quarter, at an average price of $550,600 —  Read more ➝

Now may be the time to rethink international allocations

  Deutsche Bank’s Foreign Exchange (FX) team forecasts that the U.S. dollar will continue to appreciate against other major currencies through 2017. As this occurs, U.S. investors with international allocations may continue to see their returns eroded by the currency effect. In their white paper on the subject, they make a strong case for a long term cyclical  Read more ➝

7 Reasons Oil Prices Will Continue to Tumble

As reported by Oxford World Financial Digest: Fortune magazine has run an engaging and enlightening article, written by market analysts, which argues that there are seven signs why oil prices will continue to drop. The first reason is that the world is flooded with oil. US production is near a thirty-two year high at near  Read more ➝

Netanyahu’s Speech Before Congress

Regardless of your political stripes, this is a speech is worth watching.  It lays out the current state of affairs in the the Middle East in all its complexity and describes the risk of not getting the policies right in the region. As much as many of us in the US would like to divorce  Read more ➝

The American Economy Is On A Roll

America’s economy is on a roll.  Don’t believe me, take a moment to read the Roar Eagle Roar issue of Bloomberg, including the article, America The Relatively Beautiful  CLICK HERE. Among other things the article states, “The U.S. economy has generated jobs at a pace of a quarter million per month over the past year”,  Read more ➝

Strong jobs report shows wage growth

Today, the Los Angels Times reported that “Employers added 257,000 net new jobs in January as hourly earnings increased’.  I expect that this information, along with low energy prices, rising housing prices and extremely low interest rates will likely be the catalyst for the Federal Reserve’s Board of Governors to begin raising the discount rate  Read more ➝

ECB Stimulus exceeds forecasts

The European Central Bank announced a monetary stimulus package that exceeded most economist’ expectations and may be just what the doctor ordered to bring life back to the European Union’s economy.  The Los Angeles Times reported (CLICK HERE to view article) that the ECB will enter into a bond buying program through September of 2016  Read more ➝

Deflation Fears Likely Overdone

In the January 11, 2015 issue of the Los Angeles Times, Tom Petruno examines Wall Street’s latest “Worry Du Jour”, Deflation and provides ample evidence that deflationary fears are likely overdone. Although it is true that energy prices have recently fallen dramatically, healthcare and food costs have not followed.  Also, lower energy prices are usually  Read more ➝