Jumbo CD Investments - Newsletter

Welcome

What a process it has been to get this completed. I apologize for all of the delays, but I was trying to be frugal and save some dough. And ego got in the way. Surely, I had the skills to get this done on my own. Well, as it turns out, yes and no. I had some of the skills, but just did not have the time. In this case, it certainly pays to have someone else manage parts of it. I'd rather be seaching for higher rates. :O)

I also wanted to make it clear that you are free to contact any of the banks in the newsletter. Some of the links are affiliate links where we do get paid, but many are just there for you since you have been supporters of us. I believe in the big scheme of things, one good turn deserves another.

Market News

The FOMC released the minutes last week. They have seriously reduced their outlook for the year and furthermore indicated they expect unemployment to increase significantly. This will continue to keep them between a rock and a hard place. Inflation is beginning to show up in other parts of the economy which will make folks want higher rates. However, the Fed wants to spur on the economy, thus needing to keep rates down. Hopefully a happy middle will be found. Supply and demand as well as the inflation concerns has been pushing CD rates up on the longer term CDs

The Stock Market continues to struggle with the credit crisis as well as Oil. Back in October the market was setting new highs. The dow climbed to 14,280. It closed at 12,284 on February 21. It continues to be up and down, as of this writing it stands at 12,648.

Treasury prices of late have also been up and down. Prices and Yields move inversely from each other. But inflation worries have pushed yields up (prices down) on Treasuries, also. The 2-year slipped below 2% a couple of months back and as of now is at 2.612%. The 10-year is at 4.03%. The 10-year is back up to levels we saw in November. Another interesting development, is many institutional investors would invest in long-term bonds in a market that historically has allowed for short-term sell-outs. Basically, because of the demand investors could invest in a 30-year bond, but receive their funds back in as short as 7-days. However, much of the demand has dried up and the investors are stuck holding long-term bonds in the place of what was considered a pretty liquid investment. This is also putting upwards pressure on the longer-term yields. After all, if you are only planning on holding something for 7 days, you don't worry to much about the yield. But 30-years, that is a different animal.

Savings and Money Market Rates

Institution	APY
WaMu	3.75%
Countrywide Bank	3.80%
Emigrant Direct	2.75%
More Savings Rates

CD Rates

Institution	APY
Element Financial	2Y -- 3.65% (+0.05 for $100K)
Countrywide	1Y -- 3.95% (higher in some states)
Greystone	3Y -- 3.86%

Other Offers

I don't know how many of you market your own products and services on the internet, but if you do I would encourage you to check out Aweber for handling your newsletters and blog posts.

Please let me know what you think about the newsletter. cd :O)

Disclaimer: Jumbo CD Investments does its best to accurately verify information. However, we cannot and do not guarantee the accuracy of information provided on our website or publications. Futhermore, Jumbo CD Investments does not guarantee, approve, or endorse the information or products available at these institutions or their websites. News and articles published by Jumbo CD Investments are for informational purposes only and do not serve as investment advice or as a recommendation of the products or businesses described within. The opinions herein are the opinions of the author and do not necessarily reflect the opinions of Jumbo CD Investments.