The selloff this week has been brutal. Coronavirus fears have taken over and investors are moving their money to safe havens such as bonds. Because of this, bond rates have plummetted. The 10-year note reached an all-time low trading below 1.25%. This is what a 30-year mortgage is loosely based on and is about 2% higher than the 10-year note. This has caused a spike in refinances across the nation.
Wall Street's selling hit a new level today. We officially hit the 10% correction point. Typically, this is a healthy pullback in a bull market and resets investor's mindsets to turn bullish again. Once the coronavirus fears subside, market sentiment and supply chain impact will be evaluated. GDP numbers around the globe will take a hit but the US economy is still very strong. If we are able to contain the spread in the US, the current selloff will be a great buying opportunity.
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