Best Stocks to Invest In Right Now
For quite some time now, I have reiterated that the best stocks to invest in right now are actually the commodity etfs. With inflation likely to run rampant over the next few years, we are likely to see commodities soar, much like they did in the late 1970s and early 1980s. The commodity etfs that are set to make a strong move upward are:
DBA – Agriculture
DBB – Base Metals
DBE – Energy
DBP – Precious Metals
These etfs actually follow the price of the physical commodities rather than actually commodities companies stocks. I fear that commodity producing companies could see another big hit in the near future as the American economy could be in trouble with the housing market continuing to slide lower. Home prices are the underpinning of the American economy and until we see a bottom in those home prices, I cannot see strong economic growth for this country.
Overall, the best stocks to invest in right now are the commodities etfs that track physical commodities. If you want to take on a new hobby, investing in physical commodities themselves can be exciting. Buying gold and silver coins has been a hobby of many and could turn big profits over the next few years.
Home Loan Modification Affected by Mortgage Rate Trends
Home loan modification was a buzz word for quite some time in early 2009. Everyone and their brother, or sister for that matter, wanted to modify their mortgage. Some people were modifying to avoid foreclosure while others were refinancing at extremely low rates to save large sums of money. Either way, the historically low mortgage rates made it very alluring to get a mortgage modification.
For the last few weeks the mortgage rate trends have totally changed. At the beginning of the year mortgage rates were going down, down and down some more. Now that the 10 year treasury rate is uptrending, the mortgage rate trend has also changed. No one really knows how high mortgage rates are going to go, but it sure seems that the uptrend has begun. It is scary to think about what this is going to do to the overall housing market; only time will tell.
10 Year Treasury Rate Pushing Mortgage Rates Higher
Since the beginning of the year, the 10 year treasury rate has been in a steady uptrend. In December, the rate was at 2.07% and just recently we almost hit 4%. This amazing ride has not been coupled with mortgage rates which is quite unusual. There is a strong correlation between mortgage rates and the 10 year treasury rate so it is very unusual see to one uptrend while the other is downtrend.
Well, that all changed about three weeks ago when it is likely we saw the end of low mortgage rates. Rates may have hit a bottome when they went under 4.8%. Since then it has been a straight up shot to over 5.5%. Bankrate is even reporting that average rates are just under 6%. There is a HUGE difference in getting a 30 year fixed rate mortgage in 4.8% and 6%. I hope all of you locked in on low rates!
Inflation Investments are the Future?
Filed under: Commodities Bull Market, Financing, Investing, Stock Market History, Stock Market Predictions, Stock Picks
A very good article on Inflation Investments points out that hyperinflation is quite possible in the very near future. With Ben Bernanke printing as much money as possible, it is almost inevitable. If we do see inflation in the coming years, the place to be is in commodity investments. As many of you know, this site has been strongly invested in commodities for quite some time and we think the commodities bull market is only half way complete. That means we could see another NINE years of heavy commodity gains.
Interest Rate Predictions
On the front page of CNBC this article appears. Mortgage Rates jumped from 4.91% to 5.32% in just one week! Looks like we really need to keep an eye on interest rate predictions. The 10 year treasury yield uptrending has DEFINITELY pushed mortgage rates MUCH higher. WOW!
Mortgage Rates Forecast Getting More Clear?
Over the last few weeks, many people have been attempting to forecast mortgage rates. Prior to last week most mavens leaned to the side of the fence that said mortgage rates would head lower. Well, after getting a bounce, the mortgage rates forecast looks to be getting a little more clear. If sure seems with treasury yields heading higher that mortgage rates will follow. It will be interesting to see what President Obama and Ben Bernanke have to say about this though.
For those of you who have to opportunity to lock in at extremely low Wells Fargo mortgage rates, consider yourself very lucky because you never know when that chance may come again.