Phil Grossfield's Blog

A LITTLE EXTRA…

Jobs Week; Michael Jordan Hits $1,000,000,000

Michael Jordan Joins Billionaire Club.   My favorite basketball player of all time…nobody can touch MJ…but it had nothing to do with money.  But now he adds his name to to the billionaire club by reaching the $1,000,000,000 bubble.  Here’s the article on CNN Money if you care to read it.  I wonder what leader list he’ll join next…

My Market Update – 03/02/2015

Bonds Down -31bps…Reprice Worsening Possible.  The 30-year Fannie Mae bond is down -31bps since Friday’s close.  Generally a lender’s pricing worsens when the bond is being sold off.

The stock market is performing well this morning and the NASDAQ has hit 5,000 which hasn’t happened in 15 years…this is the reason bonds are being sold off.  Typically traders either invest in bonds or stocks but rarely both.  Moreover, it’s a fair analysis that when traders are investing in stocks, they sell of bonds to free up capital.  When they sell of bonds, our rates/pricing get worse.  Similarly, when investors feel stocks are a bad bet, they sell them off and invest in safer bonds instead which helps our rates/pricing.  But today the former is the case and the latter is a but a dream.

Therefore, if you were planning on locking today, I’d lock in before a reprice for the worse.  If that has already occurred by the time you’ve read this section, then you should check with the bond market to see if there is a chance of further bond degradation, or, call or text me.

This morning’s boost is a confidence maker for the stock market because despite economic data that wasn’t exactly strong in terms of economic strength, the stock market performed well anyway.  This could be interpreted that investors are bully on stocks and that could mean trouble for the bond market this month.  This week is full of economic reports including the all important Jobs Report on Friday.  Last month this report killed us and threw the bond market into the gutter for the entire month of February.  I don’t have an angle on what we might expect just yet, but as I learn more I’ll share it with you. For now, we need to send some positive energy towards that Friday report because we need it if we’re to see any attractive rates in March…

 

 

One response to “Jobs Week; Michael Jordan Hits $1,000,000,000

  1. Bernie March 2, 2015 at 7:58 pm

    Michael surrounded himself with good people who truly were looking out for his best interests. More importantly he listened to them and now look at where he sits. Good Job and all the rest of the professional athletes on this planet need to follow this man’s lead.

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