Yesterday markets were hammered–BUT it is one day and likely a over-reaction to the FOMC stating they may only cut interest rates 2 times next year. Markets take this as gospel–kind of silly–these words from folks who messed up interest rates for literally years by keeping rates at zero–to think they have a real clue as to what happens next year is only a dream. Maybe they cut 6 times–maybe they don’t cut at all–in a year we will know for sure.
Hopefully folks didn’t panic and start selling yesterday–I know for sure that the seasoned folks reading this didn’t sell–some of the occasional investors that are not seasoned may have panicked and tossed the baby out with the bath water. No doubt there was some pain yesterday, but 1 day doesn’t make a market. Is this the start of something bigger? No one knows–NO ONE. I will play the cards I am dealt and figure out how to address it each day.
As I had mentioned earlier in the week I was frustrated in my attempts to buy the new RiverNorth/DoubleLine 6% term preferred (OPP-C). On Tuesday I did go ahead and establish a small position – small because I want shares a few pennies cheaper–and I will eventually add many more shares. I paid $10.08 (this is a $10 issue) for this small starter position and will update my ‘laundry list’ page sometime today. I also have entered a good til canceled order at $10.02 to try to snag some additional shares.
At this minute (7 am central) we are seeing a bounce in equities – not recouping yesterdays losses by any means, but stability–this should have been expected. Where indexes end the day is anyone’s guess. Will ‘nervous nellies’ take the opportunity to sell into the rally?
Interest rates (the 10 year Treasury) which shot higher yesterday to close at 4.49% yesterday is now trading at 4.52%–this will be interesting to watch. I think any progress made on cutting the future government debt will be met very favorably–continued giant overspending will continue to send rates higher.
Yesterday there was frustration on my part as the website experienced various issues relating to caching. It took a few hours throughout the day to get it rectified. Part of the issue is related to the size of the website—1000’s and 1000’s of pages and it took a new cache add on to rectify the situation. This is another example of how donations from generous folks help to carry the load of the website cost–one can burn through a few hundred dollars real quick when there are issues. We are always extremely thankful for those that donate.
Well let’s get our day going and see where markets take us today.
