Posted To: MBS Commentary
Amid the recent slow summertime trading, there are only a few things that stand a chance of catching the market's collective eye. Somewhere near the top of that short list is "geopolitical risk" --a term that literally has to do with international relations as a function of geography, but that financial markets have somehow twisted into a catch-all term referring to any sort of conflict/tension outside the US that could result in financial markets shedding risk. When financial markets shed risk, traders tend to move to cash or into lower-volatility, liquid investments like Treasuries. This causes the classic " risk-off " move of lower bond yields and lower stock prices. That's exactly what we saw overnight as North Korea launched a missile that flew over Japan. We'll...(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/2voK7f9
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