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The Volatility Issue

April 17, 2018

In the first three weeks of the year, the stock market experienced gains that were nothing short of spectacular, extending a great year for equities in 2017. Starting with the last week in January, the markets have been experiencing extreme amounts of volatility — both up and down. It has not been unusual to see the headlines read “the biggest one-day gain/loss in ___ years.”

Volitility Markets 2018 Queens NY Mortgage BrokerThe question is, should we be worried about such volatility? Though the markets have turned lower since the end of January, the magnitude of losses certainly are not worrisome. This is especially true considering the extent of gains we have experienced for the previous two years. Certainly, one would think that the markets are due for a breather after running so hard and fast. On the other hand, breathers don’t have to be accompanied by extremes. It should be noted that the volatility in stocks has not been accompanied by nearly the same amount of volatility in the bond or commodity sectors. If all sectors were extremely volatile, this might be interpreted as a more pressing concern.

Extremes can be caused by factors which are promoting uncertainty. For example, rising interest rates, implementation of tax reforms and threats of trade wars are factors we are dealing with today. Certainly, higher rates and threats of trade wars can cause uncertainty in the markets. On the other hand, tax reform has been a positive factor affecting the markets — up until the point of implementation. Uncertainty and volatility seem to go hand-in-hand. It may just be that stocks are finding a new level of comfort. However, if rates keep rising and trade wars bloom, that comfort level may be harder to find. In reality, we don’t know why markets behave as they do, but it helps to at least understand the factors influencing today’s environment.

Source: Origination Pro

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Testimonials

Eli N

Benny and Phil were great to work with! they assisted us in every aspect of the process even when it wasn’t their job. They explained every step and guided/advised us on the best course of action. Their fees were more than fair and their integrity was at a level far above ANY lawyer or mortgage broker we have ever dealt with.

Joe D.

Philip Loria made the mortgage process quick and easy, and also found ways to save us money. He was always on top of things, very accessible, and his communication is top notch. I will recommend Philip Loria and Amerimutual Mortgage highly to any of my friends, family or colleagues.

Joe D. Long Island, NY
Ninfa Brusca

Philip and Benny Loria were very knowledgeable and professional. They exceeded all our expectations and were a pleasure to work with. They were both were just genuinely nice guys. They listened to all our concerns and did everything in their power to accommodate our needs and make feel comfortable throughout the whole mortgage process. I recommend Amerimutual Mortgage to anyone who is looking for a mortgage.

Ninfa Brusca Tuckahoe, NY
Lenny P., Occupation: Real Estate Development

Richard, I wanted to thank you for all your help and hard work. I am so glad our refinance was a success. You were very diligent and dedicated to getting me the best rate possible. I truly enjoyed working with you and will recommend your services to all our friends and family.

Lenny P., Rye, New York
Nick Tsatsaronis

Philip Loria, assisted me with my refinance. Thank you so much for all of your time and hard work. You made refinancing my house easy and stress free. I wouldn’t recommend anyone else. I will definitely use Amerimutual Mortgage for any future needs, and recommend them to anyone who needs a mortgage.

Nick Tsatsaronis Flushing, NY
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