TV personality and Wall Street man Larrry Kudlow is pleased. Ben Bernanke is my man, he writes.
I just got my latest adjustable-rate mortgage statement from the bank. When I originally refinanced this loan, it was 5.75 percent. And last summer my ARM soared to 8.25 percent. But guess what? Through February it has round-tripped all the way back to 6 percent.
So I’m now saving $2,000 a month, or $24,000 a year, because Gentle Ben has slashed the fed funds target rate to 2.25 percent from 5.25 percent last fall.
Who wouldn’t be pleased with a present like that? And with house prices plunging and home sales perking up a little, maybe there is light at the end of the tunnel. The law of supply and demand to the rescue.
Larry also notes that the gold price is down from its peak at around $1,000 per ounce and the dollar is up a bit. The Treasury yield curve is now positive, with the lowest yield on the shortest term debt.
So is the Mortgage Meltdown over? Is it time to pile into the stock market, the real-estate market, and every other kind of market?
You never know. You never know untill the fear and trembling is all over, the market is up 20 percent, and all the good deals have been snapped up. But then it’s too late!
Kudlow has this good advice. Don’t try to time the market turn. All you can do is say this to yourself. Hmm. Looks like stocks, or real estate, or Miami condos are on sale right now. Maybe I should pick myself up a deal.
As the salesmen say: There’ll never be a better time to buy than right now.
Meanwhile I am kicking myself. The Dell outlet store had some dual-core Pentiums with 2GB on sale for $259 last week. Now they are up to $299.
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