Archive for June, 2015

How the Feds Influence Interest Rates; Explained

Monday, June 15th, 2015

Anyone watching the evening news has likely heard about the pending increase in interest rates by the Federal Reserve bank.  But what exactly are they doing.  This article from the Los Angeles Times does a great job explaining the tools at the Federal Reserve’s disposal and how they influences broader interest rate environment.  To view the article, CLICK HERE

Mortgage Rates Top 4% in Test for Housing

Monday, June 15th, 2015

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 the housing market, but clearly they will increase the cost of borrowing, which in turn will have an impact on housing prices.  To read the entire article, please CLICK HERE

College Graduation. A Time For Optimism.

Wednesday, June 3rd, 2015

I recently attended my daughter’s college graduation ceremony and can say, if you are ever feeling down and blue about the future, swing by a college commencement ceremony.  The graduates’ accomplishments and speeches are so uplifting, they will surely recalibrate your optimism.

And why shouldn’t they be optimistic.  For them, the consequences of failure are still so small that they can try and fail with near impunity.  And so they will, tackling the problems that most would not attempt, knowing the odds of success are so slim.  The young on the other hand will approach and conquer life’s biggest problems, only learning after the fact that the task was nearly impossible.  Maybe it’s all part of a grand design.  As the old become imprisoned by life’s challenges, they are replaced by the young, with their unbounded optimism and energy.

It’s fun to watch the process and fortunately, I’m still young enough to work with these up and comers, including my daughter who just joined us here.  Their enthusiasm is contagious and reminds me of the time when I too was a college graduate.

Yes, the young are the future and their time is coming, and not a moment too soon.  The problems that our world faces are huge and only the strongest, smartest and most optimistic will be able to find solutions.  It’s still too soon to pass them the baton.  But that time will come and I’m optimistic about all they will accomplish.  As Steven Jobs said in his Stanford commencement speech, “Everything will work out”.  I think he’s right.  After all, we’ve got youth on our side.

Marshall G. Eichenauer, Jr.
Owner and Managing Partner

Ps  If you don’t have time to get a commencement ceremony this year, I encourage you to watch Steven Jobs’ commencement speech to the Stanford class of 2005. It will move you. CLICK HERE to view it.