Author: Innovative Income Investor

Any time I post ‘quiet day’ you can be certain it won’t be that quiet.

Today equities are up over 1% and the yield on the 10 year treasury is back down just under 4%. Why?? Who really knows. I see that the ‘services’ indexes were adjusted higher this morning–not showing moderation in this sector.

The Federal Reserve posted a monetary report to congress stressing the need for more rate hikes–Fed chair Powell will testify to congress next week on this report and of course take questions.

This morning I went ahead and locked down CD’s for $10,000 @ 5.15%–seems reasonable for a year. Plenty of cash in my accounts and so maybe out of boredom I bought these–but we will get better rates ahead–I think.

Interest rates are backing off while equity futures are just a small amount higher. Little economic data being released and only 2 minor Fed yakkers .

The 10 year treasury is trading at 4.02% after closing yesterday at 4.07%. The high in the last year has been 4.33% or so. Of course mortgage rates follow the 10 year treasury to a large degree and with rates moving higher so goes mortgage rates–after backing off to the 6% area rates are now heading toward 7%.

Equity futures are higher by the tiniest amount–just 1/4%. The equities have traded pretty quiet all week–none of the big economic numbers have been released–employment and inflation. Just the same it seems the equity markets are pretty complacent. With rates moving higher and expected to move higher for months it would seem the S&P500 would back off–maybe another 10%.

Last night I posted a bankruptcy filing article in ‘headlines of interest‘–you can find it here. I wouldn’t call the number ominous –but certainly concerning.

Also last night in headlines of interest I posted lodging REIT Sotherly Hotels (SOHO) earnings report. Pretty decent–they survive –no common dividend being paid, but preferreds are being paid (although there remains some arrearages). With the common at $2.33 they should consider liquidation of the company while asset prices are higher and before the next recession–but they won’t as long as the top folks are getting paychecks.