Nothing says panic like historically low interest rates. To think that people are being subjected to 30yr mortgage rates of 4.40% is somewhat harrowing. Could you imagine being on the receiving end of such a con?
Here is a 10yr chart of the 10yr treasury. Clearly you can see there is nothing unusual about the yield. Sure, it’s going up a bit. But, what the fuck did you expect with the Fed hiking rates? Did you think rates would stay at 2% forever?
How about the spreads? What of the spreads? The 2-10 spread is 60bps. This isn’t a very large spread, but it isn’t small or flat, or fucking inverted — so relax.
What of the banks? Well, what about them? If there is a sector that would be panicked by rates that were too high, it would be the banks.
Thus far, they’ve done splendidly. JPM is +8.8%, BAC +9.2%, and WFC +8.4% — all beating the S&P 500.
Find something else to worry about.
FYI: I sold RAS, +30%.
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Reminder: Everybody who can should get an Annual Physical. Make sure to include a Vitamin D check if it’s not already part of the comprehensive blood work.
Men: You should ask for a complete testosterone check. It’s not normally part of the annual physical but can be included. It may cost you. But it’s a great yearly baseline over time and it’s a very important hormone that you should keep track of.
Good one.
If you regularly have weight flux follow this advice.
Vitamin D = eat cooked mushrooms
WTF? Did I smoke too much weed today? I thought this was a financial blog and we were just pondering level of interest rates instead of testosterone levels and Vitamin D! Perhaps I need to do more hash oil now to catch up.
Too much weed? Is that a thing?
ZH has a plethora of counterarguments to this. ZH has been in a state of Fire-and-Brimstones-panic since 2009. Don’t you know everything is going to zero…eventually?
I still own RAS.
Regards
Chuck Bennett
With cloud computing, AI, and other technological advancements, the need for office space is decreasing. Rising interest rates further anchors commercial real estate. And you might want to look at urban commercial vacancy rates.
This company is on the way to $0, but maybe you can find another sucker to offload your hot potatoe.
fuck yea,
i want higher rates,
all those that are levered and mortgaged to the max deserve a good slap down,
live within your means fuckers
“Did you think rates would stay at 2% forever?”
No, but if the economy is doing this well with rates still this low, how low do you think rates will go with the next recession?
Rates haven’t bottomed yet.
Did you see how rates reacted right after I posted? I’m pulling a Trump and clapping for myself.
Gundlach is autistic
What is the RAS story?
The RAS story is one where the CFO was an accountant in his *first job* out of college during the housing bubble. That’s the kind of experiecne you want leading your commercial investment firm?
http://www.rait.com/leadership/alfred-j-dilmore/
It’s a penny stock, eventually to be worth less than that. Unless you are a chart trader, you’d have better odds with a lottory ticket or crypto currencies – at least the potential payoff would be much larger.
The whole purpose of investing in REITs is to get paid a dividend (as opposed to capital gains apprecaition like most stocks) , and the last *quartely* dividend was a whopping $0.05. If you gave a beggar a stock certificate, he’d bee better off burning it for heat.
Wouldn’t banks want higher rates? Of course, it would depend on the term with them borrowing at the low end and lending at the long end.
I sold half about 5 minutes after I said I was holding.
Haha
Still have a small amount. I’ve known and played with this thing from back in 2003.
It might be worth zero or maybe a dollar.
Regards
Chuck Bennett
I think the fear is that if the 10 year can get to 3% bonds will take away investors’ dollars from stocks. Fear is a beautiful thing right now.
worrying about rates is definitely on the spectrum
My 30 year mortgage with no closing costs or points from a few years ago is at 3.25%. I may finally be done refinancing. I expect inflation will essentially make my real interest rate zero, so no plans to pay that sucker off early.