The bond market has taken on a very summer-like feel and it is not because temperatures could top 90 degrees here in the Northeast, later this week. The mixed data and the Fed's commitment to a gradual, but historically moderate, monetary policy … [Read more...]
Are Real Estate Investment Trusts The Best Way to Invest in Property?
In the August 25 article, “Are Bonds and Commercial Real Estate The Perfect Mix?” I shared a RealCrowd.com chart showing that during the 20-year period ending 2013, a combination of corporate bonds and so-called “core” commercial real estate produced … [Read more...]
Mortgage Refinancing Jumps
Yesterday was yet another with a dearth of economic numbers. However, we did have one piece of economic data. MBA Mortgage Applications rose 0.9% versus a prior 3.6%. The increase in mortgage applications was due to refinancing activity. The mortgage … [Read more...]
Where Has All The Value Gone?
For the first time since the financial markets bottomed in 2009, I can say that across the universe of securities I monitor, there are no opportunities worth taking. Yes, there may be a few pockets of value. But I already own them. In general, the … [Read more...]
Should You Buy Into Tempting Mortgage REIT Yields?
For income investors with a strong stomach and a desire for double digit yields, mortgage REITs, or mREITS for short, pose an enticing proposition. Though the “REIT” moniker gives off the impression that one is investing in tangible real estate, … [Read more...]
Are REITs A Practical Bond Alternative?
Once thought of as a quintessential investment, residential real estate has lost a lot of its allure over the past decade. Indeed, the economy is still working off the excesses brought about by the housing bubble and subsequent fiscal crisis. As a … [Read more...]
Avoid This Risk Tolerance Mistake
Investors are not always honest with themselves about their risk tolerance. Most investors overestimate how much risk they are willing to accept. And, some even drastically underestimate their willingness to handle risks in the stock … [Read more...]
Would I rather buy a home or own $50,000 of bonds?
The Connection Between Interest Rates and Housing Prices I have seen a number of articles recently about the impact of rising mortgage rates on housing prices. Since January, the average interest rate on a 30 year loan has risen dramatically , from … [Read more...]
The Fed is not responsible for maintaining or increasing the value of your assets!
It’s Up to You Yes, it is true that it can be prudent not to bet against the Fed. However, the operative word here is “bet.” Bet equals speculation. Speculation means that you are hoping to buy low and sell high or short-sell high and cover buy low. … [Read more...]
Housing Bonds – What they are and how they work
Housing bonds are Bonds backed by mortgages such as those issued to fund a housing project. As with traditional mortgage backed securities, housing bonds are subject to prepayment risk. This is the risk that mortgages will be paid off early and the … [Read more...]