Can We Sustain The Rally?

Unless you have been hiding out in a hole, you are aware of last weeks historic drop in the stock market! We saw a 20+% drop! I guess everyone had a really good weekend, because upon the news of a worldwide effort to shore up banks investors decided to pour in on! The market surged 936 points (11%)! Now that is what I am talking about! This is apparently what investors have been looking for. This morning we have seen even more of an increase and at the moment we are up 146 points. The Dow sits at 9534, but I would suspect today to be another wild day. I sincerely hope we can sustain this rally. All investors need to realize that smart minds all across the world are now working together to do everything possible to regain some solid footing and fix this mess. Rest assured knowing things will get better. We are a mortgage company and have no industry knowledge or licenses to advise you what to do with your money. I just recommend you have an in depth meeting with your financial advisor to formulate a plan. Make sure you are diversified and in the best position for you right now. Other than that I would imagine you just need to keep funding your account and wait this out. It will get better. Just realize this money is money that you won't need for quite some time. If you are closer to retirement, then you must look at your nest egg a bit differently. This is where it gets much more complex and your advisor can direct you to your goals. I bring this up because as a investor your confidence in the market and our economy is crucial! I feel sorry for all the people that bailed because they couldn't take the stress and missed out on yesterdays rally! This is going to take a worldwide effort by all to get out of this mess and I know we can do it. I am sure you can see how crucial the housing and mortgage market is! A huge part of this recovery is stabilizing these areas! The more confidence you and all investors have, the better. Much has and is being done to stabilize Mortgage Backed Securities. With this being the case I hope yesterdays renewed confidence will work its way to these bonds! These are what impacts mortgage rates. If these bonds don't rally in order for rates to improve, it will be much harder for housing and mortgages to recover! As long as investors have faith in the market and MBS's and this new initiative to capitalize our banks is effective, we should be able to make it happen!

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