Stock Indices (DOW, S&P, NASDAQ) are down 2.4-3.0% to start off 2016–that’s just today. This comes on the tail of a 7% drop in the Chinese equity market, a selloff so massive that they closed the trading floors early to stop the bleeding. Speculations on the drop in China are still being discussed. Other events causing our stock market to tank is Saudi Arabia cutting off diplomatic ties with Iran, which is causing a spike in oil prices.
Mortgage Bonds are a beneficiary of economic uncertainty, and we are seeing prices up near the 30 day highs. Today’s bump breaks through the three-month-long down trend and I am hoping for lower rates ahead as a result.