Author: Innovative Income Investor

As many folks know I am less than thrilled each time Federal Reserve officials yak–and that goes doubly when the Chair speaks as he will today and tomorrow. In this case the whole thing is a ‘dog and pony show’—not really of much use as congressional people either praise the chair or beat him up. If these folks were so bright we wouldn’t have such a government fiscal mess. While these speakers irritate me, maybe my irritation should be with investors who act like a bunch of nervous Nellie’s every time these knuckleheads talk instead of acting rationally. Oh well–just deal with it.

For my part I have been super busy with my ‘real work’ so yesterday I was out of the office most of the day so did nothing investment wise–which would have probably been the case even if I would have been in the office. Collecting dividends and interest certainly is lower stress than trading in and out of various investment options. As I have mentioned before my current allocation of CDs, money markets, short duration high yield term preferreds and baby bonds and a sprinkling of perpetual preferreds has performed extremely well (relatively speaking). I am staying ‘green’, although it is very modestly green–I don’t see this changing for now–until I can get a firm conviction on the direction of interest rates down the road I won’t be buying perpetuals.

The 10 year Treasury is trading at a current yield of 4.53% which is up 5 basis points from the 4.48% close yesterdays while waiting for Jay Powell and then the CPI tomorrow. We have been in a trading range of all of 2025 of 4.4% to 4.8%, but news this week could push it to new lows—or very well may push it higher if CPI/PPI come in just a little hot. Guess we just have to wait and see.

So today I watch–that’s it. I will look for my next possible buy–but no pressure to do anything–boring, but I think it is the best way to preserve capital for now.