Its about FED tapering...Every time the fever grows for the FED to taper the Mreits tank....When the fever subsides the Mreits soar....With the housing data lousy, employment still high, mortgage rates up, the talking heads on TV claim that the FED tapering will be delayed.......Up go the Mreits! Its really not hard to figure it out. Wait a few days when the market rallies and things start to look better. Taper talk will resume and the Mreits will tank again....However, I am guessing that AGNC and MTGE will have a pretty good run going into the next dividend cycle, given the announcement of a STABLE dividend. Bought the MTGE DEC 20 Calls last week. I am looking for a run to at least $22
There is no real growth in GDP. Just like every other quarter the numbers for Q2 will be revised down. No real income growth, housing fueled by investors and low rates is out of fuel, car dealers are pushing lease deals now, back-to-school sales stunk it up, real unemployment/under employment rate is close to 15%, sequester kicking into high gear in October, Obamacare train wreck hits in January, etc. With a lot of luck we continue to hover between 1.4% and 2% GDP growth. What, besides speculation and selling by the Chinese and Japanese will underpin over 3% rates. Nothing.
You see the difference in the 10yr versus the 30yr.. Or how about the 5yr versus the 30yr. Someone is punching to hard on the belly of the curve; and going to get a tummy-ache.. Since these d-bags at yahoo only let you post links to yahoo sites.. here.. a very vague example. Really need to check out ^fvx ^tyx ^tnx . Throw in ^SRVX for fun. Everyone loves a good cervix