Wednesday, September 17, 2008
Rate Watch: Cautiously Floating
Bonds are trading modestly higher (higher price, lower yield and lower interest rates) after the Fed's loan to AIG to prevent it's Bankruptcy, and the Stock market is off 500 points so far today. Stocks and Bonds are digesting all of the news from yesterday as the Fed left the discount rate the same, and today's report of lower new housing starts. For now, I recommend cautiously floating as Bonds improve slowly from yesterday's downward market movement.