QE was instituted to save the banks and to reduce unemployment from the recession, not to prop up the stock market, which was an ancillary effect of QE. Now, the FED has telegraphed that stock prices are bubbled, make no mistake, when FED says something they are telegraphing changes are coming. THIS TIME, THE STOCK MARKETS WILL PLUNGE FROM OVERVALUATION, LIKE 1987, not from slowing economy, not from rising unemployment, not from failing banks. I looked at stress test data, and the FED is fairly confident we can have a 50-80% correction across all averages without any disruption to the job engine, or business solvency or bank solvency. Mainly the only ones that will get hurt is the average Joe who is in funds or doesn't know how to hedge correctly, The professionals, pension funds, banks, gov. pension funds will use the correction to bone up their long term investments to pay for baby boomer retirements. THE BIGGEST RISK TO THE FED now is the retirement system and job creation for the children of the baby boomers. Big corps., medium corps, are sitting on TRILLIONS of investment dollars waiting to invest when interest rates are normalized. THE FED IS LISTENING TO THEM. The next phase will save the pension system and create jobs for the children of the baby boomers, this is the transition phase from one generation to the next, we went through this in the late 70's and early 80's from the last baby boom, "Bob Hope" generation, all perfectly normal. The best time to load up the truck then was 1979-1982, which was the market asset valuation bottom. Right now we are at the TOP of the asset valuation or the YELLEN BUBBLE POINT.
Have you seen the 10 yr bond? it's 2.47%. It keeps falling... it's down like 60 basis points from 7 months ago. What rising rate environment are you talking about? We are in a falling rate environment. Might even drop below 2% by the end of the year. That said, I am short the 10 year treasury at 2.475%, 4 contracts (US 10 yr futures). I also own 21,500 shares of MTGE and have 215 $20 MTGE September calls . I must warn you... That if you are short, you should consider covering until post earnings at the very least. I believe AGNC and MTGE are going to go up 15% or more over the next 3 months. Remember, these things can trade above book value very easily. Especially since the rates are coming down. I am not trying to root against you. I am simply stating the obvious. Heck, you might even make some good money shorting later this year.. but right now.. being short is a losing strategy. Keep a close eye on the 10 year bond.
Lesbians, gays, bisexuals and transgenders should NOT be discriminated against. This was helpful legislation. I think they should be given free therapy if they seek it too. Just in case some of them are LBGT because of an mental disturbance. I am not saying all of them are mentally disturbed.. its just.. I have personally had a number of friends who were LGBT who did finally get into therapy and found out they were not gay etc and now are married straight with kids.
He's singlehandedly saved the world!!!!!!!!!!!!!!!!!!!!!!!!!!
All hail Obama, the greatest leader in history!!!!!!!!!!!!!!!!!!!!!!!!!!
after about 10 am it's been climbing....too easy...check the pattern.....just as the market has been selling off hard...like 1/2 % daily.....fun huh.... yeah well add up say 4 weeks of that pattern.....big $$$$$$$$
a republican president caused RECESSION....OR DEPRESSION. after Hoover, and Nixon, AND FORD, and
Reagan, and both bushes. These are the creators of the worst declines in our economy. Period.
NIKKIDIMWIT...when you start 2 wars... and hold the record for causing massive lay-off's in record numbers...
complete financial collapse...banks and GM and AIG needing 100's of billions in bail outs... ya think it may take longer than 6 years to fix...when gw had 8 years to completely f@#$%^& it up...huh....no wonder you bought this rubbish at $35....dummy.
Sentiment: Strong Sell
with the messes the REPUBLICONS left for MR O. it's not surprising. repubes dow 6500. nuff said.
since we got gw out things have improved greatly....ya liar !
Sentiment: Strong Sell
Hussein looking extremely gray this a.m. Cigs are bad, bad, bad for you, kiddo.
Since you are part of the left then you are part of the reason this country is in such a mess. Unconscious as to what is going on around you and oblivious to the truth.
A DECLINING ASSET. I told you all it would trend at the dead cat bounce level....AND THAT IS ALL AGNC HAS DONE. going lower on rising rates.
Sentiment: Strong Sell
There will be many more up weeks for AGNC over the next 2 months. $25 price coming. Why? Positive earnings report and book value of $26, Dividend run up... 10 year bond is in the 2.40s, (but doubt it will break 2.42. We will see) Most likely range bound though... between 2.42 and 2.66