February 2018

Written by Robert H. Ruth

Over the past 2 weeks I have commented on the increased volatility in financial markets and the impact this volatility has had on mortgage rates. This volatility has happened before, many times. The situation now is to try and figure out whether the mortgage rate market is at a tipping point or if this is more of a transition.

The reality is that it is very hard to predict what will happen tomorrow today. So I’m not going to make any predictions about interest rates. I am going give you some targeted advice about how to react to these changes so you can make sound financing decisions

Volatility is here to stay (for now)

Due to the fact that the Federal Reserve is reversing their policies of quantitative easing

Written by Robert H. Ruth

 Over the past few weeks, we have seen increased volatility in the stock market, and this has taken many people by surprise. The market has begun to behave in a less predictable manner and this has caught people off guard.  They are not accustomed to, or do not remember that markets ebb and flow and occasional volatility is all a part of investing.   

People also may have conveniently forgotten that the low interest rates we have seen since 2009 are not normal.  Those rates were engineered by the Federal Reserve to keep our economy functioning during the most severe recession since 1929.  Without the intervention of the Fed, our economy would not have recovered from the recession as quickly as it has, nor would there be

Written by Robert H. Ruth

Over the last 2 weeks we have been witnessing a significant change in the financial landscape in the United States. During this time we have seen the stock market come down from their recently achieved historic highs.  As the price of stocks has decreased, the value of investors’ portfolios, and 401K accounts, have been impacted.  

• Whether this is a short term or a long term phenomenon remains to be seen.
• The reality is that the rapid run up in market valuations since the election in 2016 occurred much faster than is normal, and therefore the likelihood of a correction had been anticipated for some time. 
• What had not been anticipated was the swiftness with which the selloff has occurred. 
• When this happens,