Well we are seeing higher interest rates this morning with the 10 year treasury now at 4.66%–with economic news being released today who knows where it goes to.
Equities are flattish this morning–yesterday equities were down about 1% most of the day before a fairly furious rally the last 90 minutes of the day which brought the S&P500 index to be slightly positive. So we certainly can see some crazy things happen – whether we see more of that today is anyone’s guess.
I was looking at my U-Haul Investors Club accounts yesterday and am pondering whether this vehicle has outlived its usefulness. For the 1st time in many years their securities being offered are not being oversubscribed. Their coupons are obvious inferior (4.75% to 5%) as measured by risk/reward. They are illiquid and uninsured and they have substantial competition from other income issues–whether it be CDs, treasuries or even corporate bonds. Thinking I might begin to build some cash in those accounts and then transfer to my brokerage accounts where I have more alternatives at fairly decent rates.
Well this will be another ‘do nothing’ day for me–just hanging out and watching.