A fairly sure way to keep interest rates down is to sell off equities HARD. While there are likely a couple factors to the interest rate fall you can be certain that a fair portion of it is simply a flight to safety.
While lower interest rates may at times be helpful to income securities that is not the case today. The average preferred and baby bond is off 2 cents in spite of the 10 year tumble to 2.81%. Sometimes the flight to safety also means tossing the baby out with the bath water which means selling common AND preferred stocks.
Todays move simply shows that an investor can’t focus on any given factor to drive interest rates. Yesterdays action got the 10 year to close at 2.90%, but that is all forgotten today as talk of a trade war takes the stage.
As an investor that bought our first common stock in October, 1971 these nervous nellies and talking heads drive us a bit crazy and to some degree we long for the olden days when we had to wait for the newspaper to arrive to find out what our stock did the day before. Given that we probably won’t go back to those days we live with the cards we are dealt.
Reviewing portfolios today we see little damage–a little here and a little there but nothing to get exited about.
We shall see what transpires the rest of the day as the DJIA is off 369 right now and the 10 year treasury is 2.83% (still locked in the 2.8 to 2.9% range).