Two Ways To Play: Holiday Mortgage Shopping Spree
Strengthen your portfolio in good times and bad.
On its website, the bank said it bought bonds that mature between December 2012 and November 2017. The purchase was "financed through the creation of additional bank reserves." This is the second transaction of the Fed's new $100 billion program. Last week it made a similar acquisition of $5.9 billion in notes marking the first investment in agency debt in almost 30 years.
This is in contrast to the activities of other central banks. Fed data shows holdings of agency and mortgage debt by foreign central banks have dropped by $125 billion from a July record to $859 billion because of this year's market turmoil.
For context, see Professor Lance Lewis' column, Minyan Mailbag: No Tarnish for Gold.
From the Bull Pen: Bulls can consider the gold ETF (GLD). One can consider setting an initial position here with a sell stop below $76.
From the Bear Cave: As Professor Lewis says, the Fed has only two options: default or debase. Bears can consider the dollar bearish fund (UDN). A sell stop can be set in the $24-25 range.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter