Posted To: MBS Commentary
Have you heard the one about the falling knife? And how no one wants to catch it? That's one of the market's favorite analogies for the fear experienced by potential buyers of an asset whose price has fallen so rapidly that it " surely must entice demand soon." It's true enough that analysts, traders, and casual observers can all look at the current pace of bond market weakness and conclude that buyers "have to" be ready to pounce some time soon. But it's one thing to conclude and another to put money on the table--especially when putting money on the table could get very expensive very quickly if your timing is off. Mistiming the catching of falling knives results in mutilated hands and fingers. That's why no one wants to catch them. Historically, things...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2gPM2yB
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