Are you trying to figure out what to invest in this year? Well Toni Straka from Prudent Investor, knows what his investment portfolio will be made up of in 2011. Read the following post to learn more about Straka's strategies and predictions for the new year.
BONDS: The 20-year interest rate downtrend reversed in 4Q10: Short all government bonds (and hope your counter party will remain solvent.)
Rising rates will become the tightening noose for all debtors. Mortgage holders may find comfort by switching to fixed rate contracts as far out as possible.
SHARES: As inflation heats up, go long energy, food stocks (and convert ensuing profits into gold.) Underweight consumer (durables) products in a cool economic environment, short debt-laden financials, especially the "dumb money" insurance sector.
DERIVATIVES: Stay away from all OTC instruments as your contract will ultimately only be worth as much as your counter party can pay. Square all derivatives in disguise like ETFs.
COMMODITIES: Buy silver as it is still 70% away from its nominal high seen in 1980 and has a dual use as money and industrial resource. Take profits once gold:silver ratio has descended to 1:30 and reenter after technical consolidation. All other commodities have reversed and have overshot the mean by now.
CURRENCIES: Buy the real stuff - gold. All other fiat currencies are just a claim on some central bank counter party and historically they have all wrecked their product via inflation in the last 300 years.
Once you have done this handful of trades, turn off the charts, lean back, contemplate the world and check back here in January 2012.
This post was republished with permission from The Prudent Investor.
Showing posts with label mortgage rates. Show all posts
Showing posts with label mortgage rates. Show all posts
Monday, January 17, 2011
Friday, June 5, 2009
Mortgage Rates Skyrocket
Momentum in the housing market may have been killed by the steep mortgage rate increase in recent weeks. The sudden jump could keep first-time home buyers sidelined since the .4 percent increase can mean a significant jump in monthly mortgage payments. For more on the mortgage rate increase see the following post by Kelly Curran from HousingWire.
For the second consecutive week, mortgage rates rose, driven by an increase in bond yields, according to Freddie Mac’s (FRE: 0.76 0.00%) Primary Mortgage Market Survey.
Thirty-year fixed-rate mortgages increased to an average 5.29% with an average 0.7 point in the week ending June 4, marking the highest rate recorded since the week ending December 11, 2008.
The 15-year fixed-rate mortgage averaged 4.79%, up from last week’s 4.53% average, but well below the 5.65% average a year ago at this time.
One-year Treasury-indexed ARMs climbed from 4.69% last week to 4.85% this week, while Five-year ARMs also jumped, from 4.82% to 4.85%.
“Rates are substantially higher than they were a couple weeks ago, when many would-be borrowers were floating instead of locking,” said Bankrate.com’s Holden Lewis. “They were gambling that mortgage rates would decline further or stay the same. They Lost.”
Bankrate.com conducts its own rates survey each week. This week, Bankrate found benchmark 30-year fixed-rate mortgage rose 20 basis points to 5.65%, while the 15-year fixed-rate mortgage rose 20 basis points to 5.06%.
This article has been reposted from HousingWire. View the article on HousingWire's mortgage finance news website here.
For the second consecutive week, mortgage rates rose, driven by an increase in bond yields, according to Freddie Mac’s (FRE: 0.76 0.00%) Primary Mortgage Market Survey.Thirty-year fixed-rate mortgages increased to an average 5.29% with an average 0.7 point in the week ending June 4, marking the highest rate recorded since the week ending December 11, 2008.
The 15-year fixed-rate mortgage averaged 4.79%, up from last week’s 4.53% average, but well below the 5.65% average a year ago at this time.
One-year Treasury-indexed ARMs climbed from 4.69% last week to 4.85% this week, while Five-year ARMs also jumped, from 4.82% to 4.85%.
“Rates are substantially higher than they were a couple weeks ago, when many would-be borrowers were floating instead of locking,” said Bankrate.com’s Holden Lewis. “They were gambling that mortgage rates would decline further or stay the same. They Lost.”
Bankrate.com conducts its own rates survey each week. This week, Bankrate found benchmark 30-year fixed-rate mortgage rose 20 basis points to 5.65%, while the 15-year fixed-rate mortgage rose 20 basis points to 5.06%.
This article has been reposted from HousingWire. View the article on HousingWire's mortgage finance news website here.
Subscribe to:
Posts (Atom)