I’ve said it before and I’ll say it again: I’m glad I’m not the president. Politics is a tough business and the current chest puffing contest between the 75 and 78 year old men on opposite sides of world ideology is not a pretty sight. China has escalated tariffs on U.S. imports to 84% in response to the U.S. imposing a 104% tax on numerous Chinese goods (#winning). To the untrained eye (like mine) it appears like the goal of making America great again has taken a few steps backwards.
Stocks and bonds are in a free fall, and it would be well to remember the old adage “don’t try to catch a falling knife”. Meaning that it’s wise to wait for a bottom to be established before throwing money at the markets hoping to make a quick buck. Speaking of bottoms, the 5.5% Coupon might be approaching one that was established on February 12-13, since earlier this morning, the 6.0% Coupon already bounced off its support floor established the same timeframe. But unless you’re a trained knife catcher, I wouldn’t bet on it.
The 10 Year yield has risen almost 1/2% in yield since lows last Friday morning. Mortgage rates haven’t reacted quite as quickly, but they didn’t drop as much last week either.
