All is Good in the World

Just forget about all of the tariff issues and the tensions in the Mideast–all is good in the world. At least that is what common stock buyers are saying today–all was bad yesterday–but all is fixed now (not).

The 10 year treasury is trading at 2.42% so there seems to be a disagreement whether we should have euphoria today. For sure Goldilock’s has left the room.

Looking over our holdings and preferred stocks and baby bonds in general we aren’t seeing much action up or down. Ex-dividend dates are playing into some downward action (i.e. Arbor Realty issues are ex today), but outside of the normal suspects of shippers and junky issues things are fairly quiet.

For sure we wouldn’t mind a little interest rate scare to create a bargain here or there–for the most part the 3 month rise in prices has taken all of the bargains off the table so not much out there that we are eager to buy. For now we will just try to do some dividend captures etc., although even that game has become more difficult than it was a few months ago.

7 thoughts on “All is Good in the World”

  1. I am thinking about liquidating at least 50% of my portfolio. It’s a big risk but we all know a decent correction might cut one year of coupons in a few sessions…

    1. I’ve sold out of much of the growth component of my portfolio.
      The percentage of cash in my portfolio is much larger than it’s been in a very long time.

    2. Geez, I’ve held a lot of stuff that frightened me enough when things went south that I wanted to sell everything. I think that’s why I’ve moved toward only lockbox things. I’m just too old to go thru any 50+% liquidations every time the wind direction changes. Good luck with that…

  2. I am enjoying this fantastic smooth ride although I’d love to see new issues like CFG-D and NI-B.

    With that said, the market seems to be quite confident and willing to discount all bad news and there is clearly some that we are all aware of. In the end, things always return to the mean. When? I have no idea. It could be years or it could be tomorrow.

    But I know this, the fact that the market is not baking in bad news, shall not last forever. When the time comes, will it overcorrect? No clue

    1. SteveA–always the question–when? I know darned well there will be a nice buying opportunity in preferreds this year–wish it was now. What a give last December was to us all–another time will come soon I am sure.

  3. Well…one positive of a quiet income stock market is that I don’t have to rush to the computer to check my stock prices the moment the market opens. One negative is that now I don’t have any excuse not to work on that “honey-do” list. For instance, I had to spend all this morning assembling a patio dining set (one of those that comes in three big boxes and you have to assemble everything) that the wife had ordered. Darn…maybe I should sign up for a VectorVest subscription and become a trader.

    1. Artemisa–you’re supposed to do those projects only at Christmas time. I ordered a few decent pieces of office furniture recently and spent the better part of a day putting them together–maybe will go to the local furniture store next time.

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