I am happy that I was able to come out of last month relatively intact and I’m ready for another month of trading. Things are looking pretty quiet coming into tonight.
Housing worries, credit issues and the unwinding of the carry trade are still making the US stock market churn. Currencies have settled down a little and seem to be taking a break from all the recent excitement.
I just saw a recent statistic from John Mauldin’s Thoughts from the Frontline email that shows that adjustable rate mortgages in the US are set to adjust to the tune of $521 billion in the first half of 2008. Imagine all those people who are going to have their mortgage payments balloon during this time. If you think there are a lot of foreclosures now, just wait.
The next year should be interesting and I will be buying a lot of real estate. If you want to read about some economic musings from some of the brightest minds in the finance and investment community, I highly recommend you subscribe to John’s weekly email. It’s free, so how can you lose? Some of it is really over my head, but most of it is very practical and timely knowledge. Subscribe here
One thing that I found interesting tonight is that the big institutional traders are very long the US stock markets in the futures arena and smaller traders and speculators are heavily short. When there is a divergence like this, you are supposed to take a position with the institutional traders. The stock market feels really toppy though and I just wonder what their reasoning is for being so heavily long.
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