Bad News in Portugal is Good News on Main Street U.S.A.

Poor Portugal.  First their national soccer team and superstar Cristiano Ronaldo failed to advance past the group stage of the World Cup.  Now concerns over the solvency of the major Portuguese bank, Banco Espirito Santo, is creating waves through the global financial system.  Stock markets are moving downward on the uneasiness.  Coincidently, Cristiano Ronaldo is also a paid spokesperson for Banco Espirito Santo (see BES advertisement).

In this case, and in general, bad news for the stock market and other securities drives investors to the safety of U.S. bonds.  That leads to lower mortgage interest rates for American homebuyers.  So those of you in the market to purchase a home or refinance are in a position to benefit from the struggles of Portugal, Banco Espirito Santo, and Cristiano Ronaldo.