Market Update for January 14, 2009

A New Year seems to bring with it nothing new. The stock market is still struggling to find its footing and although volatility has slowed somewhat, it remains at high levels. We did have a nice 20% run off of the lows set in November but have given up a little more than 7% in recent trading. I think it will be a while before we get clarity in the direction of U.S. and international equity markets, but the fact that we are still about 15% above the previous low is good news. I expect the market to be volatile in both directions at least for the first quarter of 2009 and perhaps the second as well but I do expect the stock market to stabilize this year and expect, at this point at least, that we will see a positive year in the stock market.

One bright spot recently has been low interest rates. For example, 30 year mortgage rates are under 5% for people with good credit, adequate and provable income, as well as at least 20% equity in their homes. For those of you who have not yet taken advantage of these rates, you might want to consider doing so, sooner rather than later. My approach to refinancing is that if you can save a significant amount by refinancing now, then do not wait because in this environment if you were to lose your job, it doesn’t matter if rates fall to 3% you won’t qualify for a refinance without proof of employment.

I also want to a quick minute to thank you for your continued support and especially thank those of you who have referred new clients. Although it was a very difficult 2008 for a lot, if not all of us, I believe that brighter days are to come. Please feel free to call or email questions. I’m always here if you need me. Here is the link to last weeks radio show for those who may be interested.