Wednesday, July 16, 2008
The one thing you can count on when you take time off is that whatever can go wrong will. Earnings reports have been coming out this week, and as expected the losses were major. The interesting part is that they were not as major as expected. Today was no exception. Citigroup came out today reporting their losses $2.5 Billion for the last quarter, beating analysts' estimates of $3.6 billion. With the losses less than expected, investors believe the wave of mortgage defaults are on the wane and the end of the mortgage mess is near. Remember investors are betting on the future not the present. Another future investment is also worth mentioning is oil, which has really taken a beating after reserved were way up. Both of these have had a real strong effect on the bond, dropping us past all levels of support. In short, when you get em, lock em as the bonds are being battered hard by the news.