The overnight equity sell off isn’t as bad as I imagined it might get—and interest rates are falling by 3-4 basis points.
I suspect over the course of the day we will see a lot of up moves and then down moves in stocks, while it would appear that maybe bonds will kind of tread water.
I would expect that in spite of interest rates moving a bit lower we will see some red in income issues as the baby gets tossed out with the bath water–I know for sure I won’t be tossing any bath water out. Sometimes one thinks they can either buy or sell during the course of one of these days and gain some type of advantage–seldom, if ever, is that the case–you sell at the wrong time and also try to time a buy only to see the issue move sharply lower. On the other hand if solid quality issues get slammed hard and you simply are focused on locking in a great yield that is safe maybe legging in to some shares is in order.
One needs to watch for quick reversals in markets–remember that we could get an announcement at any minute that tariffs are now off–or more tariffs are on the way–one never knows.
I will now just watch.