Market Snapshot February 7, 2018

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Good Morning/Early Afternoon on this fantastic Wednesday.

 

It’s another nutty day. Equities are trading in a wild range… yesterday was 1000 point range with stocks closing up 500+, today is a 400 point range and stocks are currently up 130. Bonds are getting the short end of the stick through the volatility. The 10-yr is back to 2.84%. Mortgage bonds following the treasury’s and are down 14 right now. Move today could be a reaction to news of a Senate budget deal covering the next two years and avoiding another government shutdown scheduled for later this week. I’m not sure, and not much to say about it other than play defense.

 

The CFPB is again in the news. This time it’s about the new director (appointed by Mr. Trump) who has set on a path to make his bureau leaner and less aggressive. This will bode well for credit markets as it incentivizes banks and lenders to create new products to benefit consumers (hopefully responsibly). Keep in mind the bureau was formed by Mr. Obama and previously run by Mr. Cordray who held a different set of views on the value add of the CFPB. Mr. Cordray who had no oversight of any kind acted as judge, jury, and executioner. I came across this description and thought it was worth sharing (and to take my mind off the markets for a moment). The anecdotal accounts of ideological bias are largely confirmed by public information of political donations. Data from OpenSecrets.org reveals that nearly 600 CFPB bureaucrats have donated to the Democratic party, while a mere 1 donated to a Republican. Overall, CFPB employees have donated around $115,000 to various Democrats and Democratic committees.  Sounds like Mr. Mulvaney (a conservative) may have a little work to do at the next company team building…

 

Make today great!