The Wild Ride Continues

The DJIA is off 630 points (2 pm CST) as I write and maybe will tumble further into the close. Lots of nervous Nellies–obviously they have short memories or are youngsters. We are just a few percent off all time highs–big deal to some we are off 2.4%.

We just checked our personal portfolios and we are off 1/4%–primarily because of our concentration in term preferreds and short maturity baby bonds. One of our recent purchases, Spark preferred (SPKEP) is off 1% today–we have little concern over a 25 cent loss in a security which will pay us a hefty dividend.

It is our hope–and just that, that we will get a bit of a respite in interest rates on Monday. Typically when interest rates move they stop and regroup before moving higher/lower and a break would be welcome

As a side note the FED cut loose of $20 billion in assets in the last week–the biggest runoff yet in the quantitative tightening. Obviously removing pretty big bucks from the demand side of the marketplace can have a noticeable affect.

Fed Balance Sheet Trends can be seen here. You have to change the time frame to a shorter time frame to see the big drop in assets.