The current international and US political environments are affecting the stock market, specifically the US’ attack on a Syrian airbase in response to the use of chemical weapons. This brought up the values on oil, defense stocks and gold prices–all of which are affected by this kind of action. On the domestic policy side, Trump still hasn’t aligned the House and Senate on tax reform which leaves an air of uncertainty in the business sector. Meanwhile, Bond Market experts are predicting that the 10-year Treasury bond rate will potentially drop–which typically brings interest rates down. This should create an interesting interest rate tug-of-war as the Fed looks to battle inflation. Overall, many unknowns which makes me believe the Fed will be conservative around rate increases.
Geoffrey Davis – Mortgage Loan Consultant
First United Bank & Trust
6401 S. Custer Rd.
McKinney, TX 75070