There are some trades for investors looking to avoid a possible asset bubble and other potholes that could be ahead.
The standard 30-year fixed mortgage rate rose even further, a function of both the rising risk-free rate and the rising spread.
Buying bonds has interest rate risk.
Moreover, the spread between mortgage rates and Treasuries is unusually high.
Risk-free rates stay static or even rise mildly, but if the spread narrows mortgage rates could fall, a tailwind for a mortgage portfolio.
Persons:
There's, Murray Rothbard, Milton Friedman, Ben Bernanke, Bernanke's, Janet Yellen, Jerome Powell, Howard Marks, Charlie Munger, Berkshire Hathaway, Marks, Steve Eisman, Neuberger Berman, they've
Organizations:
Federal Reserve, Fed, Federal Reserve Bank, Vanguard Value, Technology, MBS
Locations:
U.S, deflate, Berkshire