Both the equity markets and interest rate movements have been fairly tame this week, but today we have the potential to see some fireworks. In about 30 minutes we will have the CPI (consumer price index) released and while we have no real reason to believe we are going to see big movement since last month one can’t predict these things with any real confidence. Forecast are for relative flat prices–any movement, up or down, more than .1% could spark big moves. We will have producer prices (PPI) released tomorrow.
Next week we have the FOMC meeting to likely confirm a 1/4% Fed Funds rate cut–obviously a higher than expected CPI would call into question that rate cut–as of now the cut is pretty well baked into investors minds.
Yesterday, as I wrote earlier this week, I did by move of the CHS preferred 6.75% (CHSCM) at $25.18. My reasoning is twofold–it is near my 7% target and the share price should remain fairly stable and I like price stability. I had trimmed back quite a few preferreds a few months ago and that appears to have been a decent move–but maybe now is the time to get a few more shares backs in the portfolio.