I continue to be fairly conservative – still plenty of money in CDs and money markets–although I have been slowly moving to some higher yield vehicles over the last few months.
With the inflation news just released (PPI) today is one to believe there is no inflation–or there is no inflation coming? It doesn’t make sense with all the tariff information—if inflation comes this month–instead of last month does that mean that interest rates are going to shoot higher? Are we going to see strong downward pressure on fixed income securities?
My uncertainty leads me to the conclusion that I need to continue to stay investing in shorter duration securities. I am thinking one of the Saratoga (SAR) baby bonds may fit the bill (I already have the SAZ issue) I can lock in around a 8% current yield for the next 2 years—and the BDC just released earnings a week ago that seemed pretty good in this environment.
We’ll see what happens–I am sure I will add something in the next couple of days.
