Monday, March 26, 2012

Mortgage rates going above 4%

Mortgage rates are going up with 30 year fixed mortgages above 4% at 4.08%. 15 year fixed mortgages are at 3.30% from 3.16%. They have been below 4% since october 2011.  Adjustable rate mortgages are also up to 2.96% from 2.83%.  Rising interest rates tend to decrease prepayment risk so this is good for REITs.
   Silver is rebounding up $.60 today to $32.84 at 4:10 pm monday. it is a good time to enter the silver market. 

Thursday, March 8, 2012

ARR offering

Just minutes ago ARR did an offering after hours and the share price is 6.93 as of 4:47pm. It closed at 7.11. The next 3 months of dividends will be $.10 each. Zacks lists ARR as a "sell" but that is at the higher price. Silver is  working its way up since last night. 4:51pm Kitco $33.90 and SLV $32.84 aftermarket with a day close at $32.85.

Wednesday, March 7, 2012

AGNC does secondary offering-- Comment on FNMA

At 4:31 the shares are $29.56 down 2.35 % aftermarket. I do not feel this is a big drop yet.  54 million shares are being offered. Silver is rebounding and is at $32.50 at 4:33 pm. One way to hedge prepayment risk that occurrs with REITs like AGNC and CIM or ARR is to buy FNMA. FNMA is helped by any aid to the public or refinance help given to homeowners. The dividends of REITs could be lower but FNMA shares may go up thus balancing your portfolio but keep in mind FNMA has a higher risk grade but it seems the government will not let them fail. FNMA could easily reach $1 by the end of the year so a small investment at 29 or 30 cents a share could go a long way. Now is also a good time for people to pick up some silver bullion or SLV especially if they do not have any yet.

Tuesday, March 6, 2012

J.P. Morgan buying Silver

J.P.  Morgan has bought more silver this year than all of 2011. This could be very bullish for silver. Here is a link to the article:

Silver down more; PSEC also down

PSEC is still up over 20% since late fall though.  Here is a song that reminds me of FNMA (Fannie Mae) about the tax bailout of them and the big banks:
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Sunday, March 4, 2012

Silver will be going up now.

The best time to get back in the silver market is this past Friday. Silver will go back up to 2012 highs. Buy stock market on dips. I do not recommend having stock without some silver and or gold and I prefer silver over gold. I do believe CIM will recover- a dividend of $.11 was declared. IVR, AGNC and CIM have very good ratings. FNMA and FMCC will also recover to $1 range this year. They are around $.318 now.