Well another ugly day–I thought just maybe we would have gotten a ‘sell the potential tariffs’ and buy the actual tariffs–but I guess folks still are feeling threatened today by the future. We have gotten a couple of dead cat bounces today, but with the S&P500 down 1.6% as I type this one can’t predict the balance of the day. I am thinking we will have (or maybe need) a giant ‘flush’ yet today to weed out the sellers. Who knows?
With the 10 year treasury off another 5 basis points to 4.13% we are seeing just minor damage to portfolios–contrary to yesterday we are seeing red–I never like red but with the equity prices falling so hard it is just a matter of time until preferreds and baby bonds get pulled down as the baby goes out with the bath water.
I did buy a few CDs this morning at 4.35% (3 month) just because money is stacking up and I need to keep it at work somewhere. Still have no intention of buying prferreds or baby bonds now, but I will be watching my current holdings to see if I can get a bargain (bargains on a term preferred or short duration baby bond is defined differently than perpetuals to me–a drop of 50 cents in an issue that matures in a year or two may present great opportunity). Perpetuals are off the table for now (this week).
