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Singing a new tune.http://www.fool.com/investing/general/2011/08/12/3-stocks-to-avoid-and-3-to-buy-in-a-crazy-market.aspx"Most significantly, this could have a drastically dire impact on mortgage REITs, companies that make a lot of their money from the interest spread between borrowed money and invested assets"
It's all about risk & reward. Notice that on the "don't buy" list, the yields were not shown. However on the "to buy " list, you get a whopping 2.5%. I'll take the risk and continue to trade.
Last time I checked lower prices on MBS would mean higher yields which would mean higher spread (assuming short rates stay anchored) which would mean higher earnings.Terr