“Rising Treasury Yields Quiet Investors’ Concerns” –WSJ Headline (11/14/19). Stock swooned last Summer, sort of, when the dive in interest rates — combined with uncertainty over trade wars, Brexit, and whatever else was in the air — convinced people that something nasty might be just over the horizon. Fast forward a couple months. Interest rates...Read More
Judging Hillary By Her Friends “I ask you to judge me by the enemies I have made.” –Franklin Delano Roosevelt [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] No, you’re never going to read a headline officially announcing...Read More
Negative Interest Rates as “Black Hole Experiment” If somebody else thinks what you think, you can’t be crazy, right? Explanation #2: you’re both suffering from exactly the same malady. Either way, it’s reassuring to read famed investor Jeremy Grantham’s latest thoughts on today’s bizarro world of negative interest rates and inflated asset prices, courtesy of...Read More
Thanks, Keith!** From my Realtor’s perspective, credit consumers — specifically, home Buyers looking for a mortgage — place FAR too much emphasis on fees, and WAY too little on service, and the very real financial value of same. Call it, “missing the forest for the trees.” So, on average, to originate a $200k mortgage, a top...Read More
30-Year Mortgages @ 3%?? For the moment, mortgage rates have bottomed, and may be even be climbing a bit. But, broader market forces (as they say) definitely seem to be tugging rates lower this Summer. Brexit Financial Aftermath There is now a stunning $10 billion-plus in negative-yielding government bonds globally (think, Germany, Switzerland, and — surprisingly,...Read More
(Even) Lower Interest Rates vs. Weaker Economy “It’s too soon to tell.” –Chinese leader Mao Tse-tung, when asked — in 1948(!) — about the historical significance of the French Revolution. To accurately assess the potential effect of Brexit on the housing market, one must first identify and analyze the biggest variables. Here’s my take: Positives...Read More
