As if we all aren’t in enough of a state of shock and panic, the earthquakes we are experiencing in the Salt Lake valley are enhancing our lack of certainty and stability at an epic level. At the same time, the bond market is falling hard, driving mortgage interest rates higher. The clear lack of stability in the financial markets is taking a toll on people. At some point, markets will stabilize and we will see the bond market bring us lower mortgage interest rates. In the meantime, we will deal with rates moving higher and volatility that exceeds what we have ever experienced.
After another strong day in the stock market yesterday, stocks are falling hard once again this morning. This is completely in line with the recent trading patterns and something that smart money anticipated. Until we begin to see an end in sight for the madness, we can expect to see stocks fall and even the safe haven of the bond market struggle.
We will maintain a locking bias.