Wow–maybe we are going to get the 1000 point down day on the DJIA that I have been waiting for for a month. This market feels a bit scary–although if you lived through the October 1987 tumble this is ‘childs play’. Remember in 1987 if you tuned in the old Financial News Network (FNN) the folks were some shade of green-so scared they could barely talk-this is nothing like that.
Additionally as you all know the 10 year treasury-and all interest rates are tumbling hard. Much discussion everywhere about inverted yield curves etc. I’m not certain that the curve being inverted by a basis point or two is meaningful—kind of a rounding error of sorts to me.
Income investors are likewise taking a little bit of a spanking–the baby is going out with the bath water–preferred stocks are off a dime or so. The thought that income issues should rise as interest rates fall is not working so well at the moment–patience is required. We may also have some year end selling to book losses for tax purposes–look at it as maybe a time for bargain hunting although we would suggest that a week or 2 from now might be better.