Good Friday AM,
As expected bonds have recovered nicely from yesterday’s beating/over reaction to the FED. We are fading a bit from the open but still in good shape and above resistance. The 10-yr is settling a bit at .74. Of course stocks are up.
A few market and economic insights:
The central bank unveiled a strategy in which it will tolerate periods of inflation above its 2% target to even out periods below, where it has mostly been since 2008. That’s likely to leave interest rates very low for a long time. The Fed said rate decisions would be guided by a desire to avoid employment shortfalls, rather than deviations above or below a certain employment level. The immediate significance is small, writes the WSJ’s Greg Ip, but it’s an important institutional and philosophical shift.
As the U.S. economy works its way through the current pandemic and recession, housing has been a clear bright spot in an otherwise dire time. This week’s chart highlights the “V” shaped recovery exhibited by various measures of housing health. The boost to the purchase market has come not only from pent-up demand from delayed spring home buyers, but also from households who have been working from home during the pandemic and yearn for more space. Homebuilders have pointed to increased activity in less dense areas compared to neighborhoods closer to urban areas as a result.
Have you ever wanted to live in Bermuda? Now could be your chance. Tourist hot spots including Bermuda and Barbados are offering foreigners work visas and tax breaks if they come there to work remotely. Just $263 secures you a 12-month visa to Bermuda, along with an income tax exemption.
Please remain safe and healthy, enjoy the weekend and first, make today great!