Author: Innovative Income Investor

We go through this every time there is a FOMC meeting–markets kind of tread water just waiting to hear what we mostly already know. Then we can dissect every word that Jay Powell speaks and come to a conclusion (and we all come up with different conclusions).

Today I believe there will be no change in interest rates (the Fed Funds) simply because employment is holding up and because most of the Fed folks believe that tariffs are highly likely inflationary and we will see the effects of them starting right now.

While everyone is sitting around speculating on the Fed I made a buy this morning. I added to my position in the WR Berkley 5.70% baby bonds (WRB-E)–I already had a position (modest in size). WRB is a super safe and very well run insurance company and while I tend not to buy baby bonds with maturities way out in the future (in this case 2058) the combination of safety and a dent 6.53% current yield makes it a good long term hold–with a chance of capital gains in the months ahead.

I continue to have cash available to move ever so slowly into solid (in my mind) shares with yields above 6% or so to move my overall portfolio yield higher.