Tuesday, April 29, 2008
We broke 2 records today. The S&P/ Case Shiller index dropped the most ever. This report talks about the rate of housing value which dropped 12.7% in February. Consumer confidence also came out today. Although the number beat estimates by .3% the number of people who believe their income will increase in the next 6 months fell to 15.1%... once again the lowest since they started recording this number. Add to that number 112%, which is how much foreclosures rose in the first 3 months of this year and toss in Countrywide's almost 900 Billion loss and bonds have been in the plus range for most of the day. However, with the Fed rate announcement tomorrow, most are really sitting on the sidelines today and waiting. A bond had been up as much as 24 Bp, but is hitting the neutral mark for the day. I am keeping an eye, just to make sure Obama's denouncement of his pastor doesn't make the market freak out. As always, if anything changes I will let you know.
Karl Menzer
435-849-0212
