Well the moves in equities in the last couple of weeks have been pretty muted. Almost daily the indexes move in a narrow range – seeming to be waiting on ‘something’ to occur. I don’t know if that ‘something’ is another bank liquidation, the next interest rate move by the Fed or just waiting for earnings season to get under way–maybe just the CPI report tomorrow. I know I am curious to see how the regional banks fared and what their balance sheets look like – the next Fed move is not something I am overly concerned with as we know it will be 0 or a ¼% hike and markets will move based on guesses about the future. Is it the last hike? After a hike the smart folks on CNBC will now be guessing when rates get reduced – the guessing game goes on and on.
While equities have been moving in a muted way interest rates have been moving in a more pronounced way–up 13 basis points yesterday. Once again we are not seeing pricing on preferreds or baby bonds moving in reaction to interest rate moves–just too many other factors playing into pricing at this time. This will change as other data points begin to fade into the background–over time prices do move with rates – but sometimes it is leading or sometimes lagging interest rates.
I posted the preferreds and baby bonds that I own over the weekend. I posted the laundry list simply because I had written that I would post it. Yesterday I made a small nibble on one of my current holdings and at the same time entered a good til canceled at a level 3% or so below the current level. This issue is currently my #1 pick for me- meaning extreme safety with a very good potential for capital gains. I plan to write in more detail on this issue today or tomorrow.
Today I doubt I will do anything at all – I have 5-6 good til canceled orders in place and I see no reason that anything would execute today, but I am surprised how often some nervous nelly will toss in a market order for a few thousand shares and prices drop sharply for a couple minutes–I’ll be there if it happens.