It is a rarity to have gains in preferred stocks like we had in January–the gain was in the 8% area on the average share. Personally I lagged the market by 1.5% as I have an allocation to CDs and shorter maturity treasuries. I am sure many outperformed me since I spend too little time jumping on bargains and rotating around to maximize returns–my market timing typically is bad–so no use chasing around.
Today is the day–I am more interested in Chair Powell’s news conference than in the rate hike announcement as it is a foregone conclusion that the hike is 1/4% – if it is more or less the markets will be very wild. So the unknown is how hawkish will the news conference come off.
Yesterday was a nice day with the S&P500 up 1.5% based upon economic numbers indicating inflation is trending lower. The 10 year treasury yield continues in a relatively narrow range–now (6 a.m. central) at 3.48% down 3-4 basis points from yesterday–I suspect we could see a breakout (down or up) of the 10-15 basis point range we have been in for a few weeks with today’s FOMC rate hike and news conference.
I am back to the do nothing mode. With a bit of cash now available for investing (and earning near 4% for waiting) I will wait for some shares to go on sale–if rates remain in this area and no bargains appear I will forfeit 2% or so on my cash holdings–oh well.