Daily Intent

Black Friday awaits us all!  Pocket books are feeling thinner, but our American mindset leads us to still purchase.  Take advantage of the fire sales.  Retailers are suffering.  However, do it smartly.

Here are some quick tips on how to preserve your credit score in the midst of holiday shopping.

As you will see, paying your bills on time is the most important.  It shows you are responsible.  You can borrow and pay it back on time.

And be sure to stay away from opening 5 Nordstrom credit cards just because you want a 10% discount.  These are not strong cards to have on your credit.  They cause inquiries and ultimately end up dormant.

“35% Your Payment History - Pay your bills on time.
30% How much you owe - Keep balances on credit cards and other revolving accounts below 50% of their credit limit.  30% is ideal.
15% Length of credit history - rather than let old cards go dormant, charge a latte a month (then pay it off).  No activity lowers your score.
10% Your new credit - Don’t open unnecessary new accounts.  And if you’re rate shopping for a mortgage or an auto loan, do it within two weeks; multiple requests could ding your score.
10% Your mix of loans - You can’t do much to change this except get a credit card if you don’t have one.”
-George Mannes
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Buzzword: Turducken

“A chicken stuffed inside a duck which is then stuffed inside a turkey. The term turducken comes from the combination of tur(key), duck, and (chick)en. It is fast becoming a popular recipe for Thanksgiving. Each slice contains portions of chicken, duck, and turkey with stuffing in between the layers. “  -Ben Burleson, TNT Coach.

Six Points to Ponder:

1. The Southern California fires have been contained.  Not all is calm.  Flash Flood warnings have homeowners in these regions evacuated.
2. Dow up 4 days in a row, back over 8500.  In last 5 days: S&P 500 up 72pts.  Nasdaq up 145pts.  Oil is down to $50.
3. New-Home Sales sink to 17yr low.
4. Home mortgage rates fall dramatically. Mid to high 5%s are here.
5. Consumer prices and spending falls in unison.
6. Santa Clara misses chance to upend University of Arizona basketball.  UNC comes into Santa Barbara and does as expected, dominates.  A great weekend of food and football awaits us.

Positives:

* The stock market had its largest two day run-up in history (in rate terms) just after plummeting downward the week before.  Proving once again the 8000 pt barrier is determined to hold.  Investors may have found their bottom threshold.  Gobble it up.
* An $800Bn infusion into the credit markets made an immediate impact in the mortgage rates.  The spread between mortgage backed securities and the 10yr Bond, recently at abnormally large spreads of 3%, shrunk to 2.5%.  Borrowers have eaten this up like a Sweet Potato Marshmellow dish.
* Consumer prices have been tamed.  The oft feared inflation and even scarier stagflation no longer a concern.  2% price increase over the last 12 months.
* Lower mortgage rates leads to increased disposable income in the near future for borrowers.

Negatives:

* Evacuations over the holiday.
* Builders are struggling with the depressed new-home sales market.
* Consumers have changed their spending habits by 1%.  This could be a positive if this 1% reduction in spending is going toward savings.  If it’s lost money…
* The Santa Clara Broncos are one shot away from West Coast domination.  In time.

Local:

Thanksgiving
Where: It’s being celebrated all over town
When: Thursday
Cost: Turkey, stuffing, potato dish…
Why: The greatest eating day of the year.  Family and friends.

Happy Thanksgiving!
Live and Be Well,

Jeff Bochsler