World Economy

The global economy has a big impact on finances in the United States. China's over-inflated stock market has taken a beating recently, causing concern among other global markets in this inter-connected world.

Mortgage rates fell last week as China’s equity market continued to spiral downward. U.S. Treasuries briefly dipped below 2.0% on Friday as investors moved to the security of fixed income assets.

With a rather quiet beginning to the week in terms of domestic economic news, all eyes will be focused on the equity markets to see if last week’s volatility and sell off continues. While U.S. markets were closed Monday, China’s equities were up about 0.7% late in their trading day, before selling off in the last 30 minutes and ending the day almost unchanged. If the global sell off in equities and commodities continues, look for pressure on the Fed to revise their thinking about the number of rate hikes this year.

 Here is a link to another great article explaining the link between interest rates, bonds, and mortgage rates:
http://www.cnbc.com/2016/01/07/lock-in-now-stock-sell-off-sinks-mortgage-rates.html

Happy Investing!

Today's blog courtesy of Sarah Riley, Caliber Home Loans

Seattle Business Investment

Inc. magazine reports that Seattle is in the top ten cities (#7) where small businesses with fewer than 99 employees thrive. Austin, TX is number one on their list.

Matt Ryan, Global Chief Strategy Officer for Starbucks Coffee Company reported at the recent Annual Rainier Chamber luncheon that, "The companies that invest in doing the right thing will benefit in the future." As an example, Starbucks has invested heavily in fair trade coffee, provides health care and free college education for employees.

The Puget Sound Business Journal reports that Chinese investment in the Puget Sound region is about to go beyond real estate. A Chinese venture capital group based in Shenzhen wants to open an office in the Seattle area so it can invest in the region's tech and biotech industries. "They're very serious about making their first mark here in the Seattle area and we're definitely working closely with them," said Office of Economic Development director Brian Surratt, who also noted that the city's talks with this venture firm are all part of a deliberate push by Mayor Ed Murray's administration to try to draw more foreign direct investment to Seattle.

Happy Investing!

Photo courtesy of Lesley Blyth