A Little Market Excitement, But Little Damage

I look at the ticker after the market open today and see stocks off to another modest move higher–that’s all I need to see–I don’t watch minute by minute each day–maybe once per hour.

The next hour I look and the DJIA is off 373 points, so I did turn on the TV to see what was going on–as typically happens all I find is folks speculating on what happened–no one really knows. 1 explanation I heard was that traders all of a sudden realized stocks were out of sync with interest rates and gold prices–well no kidding–this has been the case for a very long time.

More interesting is that the 10 year treasury had dropped to 1.51%–off 6 basis points–we just keep getting closer and closer to all time lows in the 1.36% area–to me this is pretty scary–and I always take bond prices/yields more seriously than stock prices.

Oh well, checking our accounts I find no damage in the issues I own so I guess I am not too concerned about today’s action, but lower interest rates do concern me as I really wonder how long the economy can keep moving higher in the face of the Fed reducing liquidity and the unknown affects of the corona virus. Guess we will just have to keep watching.

I note today that the new Brookfield Renewable Partners 5.25% issue, which is trading under temporary ticker BKFRF is trading in the $25.70 area–fast out of the gate. I had an interest in this originally, but I am not paying this price–I am interested if it would tail off a bit in price.

Today we are seeing a little bounce back from yesterdays modest sell off in preferreds and baby bonds. Overall shares are up 5 cents with investment grade up 3 cents.

3 thoughts on “A Little Market Excitement, But Little Damage”

  1. Tim, most of my preferreds are up today esp. the despised low yielders JPM-J,WFC-Z et al. They are only up ~0.4+% but much better than a slap in the face.

    But I guess we’ll see at the end of the day.

    1. The problem lately is with high-yielders aka shippers. Caught in a vicious circle with common equities shattered.

      1. Anyone own BHFAP? I bought this below par at IPO. But sold it today. I have been questioning their lack of GAAP earnings and today on SA. There was a bad article on about company. I sold and I’ll ask questions later. Any thoughts?

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