I thought I had seen it all until today. Traders (on the stock market that is) have taken a leap of faith into an entirely different area called psychological nightmare! News that Wal-Mart profits rose in the 4th quarter 2007' have made the traders delirious. It simply baffles me how this could be seen as a sign of economic strength? To me the rational is simple; Americans are "cashed strapped" and in turn chose to buy their merchandise at the world's largest discount retailer! The lowest prices at the largest discount retailer for cash savvy people, wow what a concept. The struggling specialty retailers posted VERY disappointing sales over the holidays and moving forward. Is this a coincidence? Not too mention that 25% of this increase was from Wal-Mart's overseas locations, a huge push for them in 2007'.
In turn this has turned out to be another nightmare day for mortgage rates with the 10 Year Treasury Yield approaching 3.9% (the highest in the last 2 months) and MBS (Mortgage Backed Securities) down 112 bps for the day! Hopefully the economic data being released starting tomorrow will greatly help mortgage rates; only time will tell.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
Tuesday, February 19, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment