Today we are seeing market react to Russia invading Ukraine–European markets are off 4% (more or less) while I see that the S&P500 futures are off by just over 2%. At the same time as equities are tumbling there is a flight to safety play in the treasury market and the 10 year treasury yield is down to the 1.87% from 1.97% yesterday.
It is likely that we will be seeing some level of ‘tossing the baby out with the bath water’ in preferreds and baby bonds. While there is never a guarantee that prices will pop back up I personally will be watching and seeing what kind of bargains appear. For sure I won’t be a seller.
When investors ‘panic sell’ my observation is either they sell at low prices or they exit the market with fear and losses and never come back–thereby forgoing income which is needed.