So last week the ‘world was ending’ and today apparently it was a ‘just kidding’ moment.
To us there is still something wrong with these markets–the DJIA is up almost 500 points and the 10 year treasury yield is off a basis point. This after a JOLTS (job openings and labor turnover report) report that showed over 7 million job opening in the U.S. with just 6 million folks looking for work–normally this should scream wage inflation coming (or already here).
The one item that is normal today is that preferred shares and baby bonds are trading 10 cents higher (the average $25/share). After taking a hit like the last few weeks almost all preferreds are basing and moving a bit higher–likely they will recoup a total of 50% of their losses and then quit moving higher–awaiting the next market moving event.