Last week had a less than stellar finish, which continued this morning as rates opened up almost a half point worse. Luckily through out this morning the trend has been bucked and things have bounced back slightly. The question is, temporarily or for at least a little while longer.
According to Sigma Research's Market Snapshot, unless that mystical double dip recession rears its ugly head again or inflation turns around, the day's of low interest rates are coming to an end. Time will tell, but if an investor who has been waiting for the absolute bottom, you might have missed it about a week ago and probably should hop on the departing train before you're in the "should-of, would-of" line waiting for the next train. You know the one that will be back in 3.99%ville in, I don't know . . . twenty years.
In wordily news President Obama and the fed's QE II policy was met in Asia with about as much hospitality as my Labrador showed the raccoon who climbed under the fence on Saturday. Obama is claiming he didn't get hit the home run but a "bunch of important singles, instead."
Well, this week sees a host of important activity, including the arrival of our new congress. First up, the Bush-Era tax cuts. Republicans don't have enough power to hit the long ball and even if they could muster-up an Edgar Renteria swing for the ages, the giant green wall that is President Obama's veto desk would consume even the mightiest of efforts. Look for the republicans to hit a solid single, at best, leg-out a slide in double.
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