01 Oct Stock and Bonds both moving higher
Manufacturing moved to the positive side after today’s ISM come in at 51.5. Keep in mind that a reading over 50 indicates expansion, so this was very well received news. Stocks took this as a reason to rally, with the Dow moving up about 150 points early in the trading day. The Dow saw its multi-year high less than a week ago at 13,653 and it continues to move closer to the all-time high of 14,198 from October 2007. However, after hitting this lofty level, the high was followed by a drop down to 6856 in March of 2009. Clearly, the Country’s financials are in a better place… Right?? Or, maybe QE1 ,2 & 3 are the reasons we are back at historical highs? mortgage bonds are within grasp of the all-time highs, so interest rates are at the lowest we have ever seen. We will advise a locking bias at theses incredible rates.