Author: Innovative Income Investor

Preferreds, including perpetuals, are down a little this morning–but we are talking nickels and dimes. With the 10 year treasury still up 9 basis points at 4.62% it could have been much worse–part of the damage has been mitigated by the S&P500 finding its low earlier at down 1%, but has now climbed its way back up to down just of by 1/4%.

Honestly this drop hasn’t brought any bargains at all.

I didn’t listen to Jay Powell either yesterday or today–didn’t even see any ‘clips’ of the testimony–I pretty much knew what he would say as did all of you– so I can do without the drama. Right now the FOMC is looking pretty smart with their call to pause rate cuts–but maybe they weren’t so good when they cut rates earlier–caving to politics I think.

We’ll see how this day ends–maybe a plunge—maybe not.

This will be a wild ride today as the consumer price index comes in very hot with almost all numbers above forecast. The 10 year is at 4.63% right now which is 9-10 basis points higher than yesterday. Equities are off around 1%.

Perpetuals are going to get spanked today–for those only looking for a solid income stream it might be a good shopping day–for others like me it is definitely a ‘watching’ day, although even short duration issues could offer a somewhat better price than yesterday.

We have Powell testifying again today in 90 minutes–so there will be a immediate response to the CPI. All in all the day could be a bit crazy.