The final readings on consumer confidence for May were released today by the U of Michigan and the 50 reading was the lowest on record dating back to the mid 1970’s.
While the consumer is crumbling under the weight of high energy prices and skyrocketing food prices the markets are ‘partying’ today with the S&P500 up 2.56% at this moment.
The 10 year treasury yield is up a bit today–about 5 basis points to 3.12% and it looks like we will be treading water on rates for a few days–maybe until next week when inflation numbers are released.
With all the current cross currents in markets I am just sitting tight–I have between 20 and 30% cash dry powder but am looking for lower prices in preferreds in weeks and months ahead so no hurry on deployment this cash–of course who really knows where common stocks, preferred stocks and baby bonds and interest rates are going–NO ONE. Of course the trick is to invest the last dollar on the day preferred stocks hit the bottom–good luck accomplishing that trick.