Stocks and Mortgage Backed Securities are moving in lock step

Just a heads up as both stocks and MBS are moving in lock step.  After stocks dropped from plus 160 to up 70, MBS rallied back to unchanged or plus 1/32nd on the day.  Since then, stocks reversed course and rallied to post a plus 212 on the Dow.  At the same time MBS were off 5/32’s (almost plugged the trigger on a worsening price change).  Stocks are currently up 160 and MBS down2/32’s.  My point here is that the market is a cougar and we are her cubs.  Don’t get eaten.  If you want to follow the trade, watch stocks as bonds are trading in an inverse relationship.

About Max Leaman Austin Mortgage

Since 2001, The Leaman Team has helped borrowers nationwide. The biggest distinction between lenders is their honesty and quality of service. A+ Better Business Bureau Rating 2010 and 2011 Five Star Professional (Texas Monthly) 2009-2012 PrimeLending Chairman's Circle Award 2009-2012 Scotsman Guide Top Originator

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