I am just here long enough to wrap up a couple of things before Christmas. I would also like to pay homage to the 100th anniversary of the Federal Reserve (happy birthday today Fed) and to celebrate Festivus.
While Mortgage Bonds stabilize, Stocks continue to hit record highs and Gold keeps sinking. Personal income is up 0.2%, but is eclipsed by personal spending, up 0.5%. Which leads me to my “airing of grievances”. What the heck is wrong with you people? Spending more money than you earn is foolhardy. Yes I am talking to you Mr. and Mrs. America and to you Uncle Sam. I just hope for my own retirement’s sake that the run-up in Stocks is not directly tied to corporate profits based on those two statistics.
MBS have gained back 95% of what they lost with the taper announcement last Wednesday, allowing rates to stay in the 3.875-4.5% range.