We love summer–the heat is something I have learned to love. In my younger years I hated–absolutely hated the heat of summer, but as one grows older the heat is much less “hot”. It used to be my wife loved the heat of summer–I would turn the air conditioning down to 68 degrees and she would turn it up–now she has hot flashes and she turns the air conditioning down and I turn it up.
So in Minnesota we have the State Fair starting, which is the official announcement that fall and the school year are just ahead–it used to be that schools in Minnesota were not allowed to start school before Labor Day as youth were supposedly helping work in the fields harvesting the crops. Needless to say it has been a long, long time since the youth of Minnesota have worked much harvesting crops
Investing for me is something I absolutely love, and this has always been true, but over the years all of the factors that go into investing change. I wish as a younger person I would have had the wisdom and the patience that I have now–with the benefit of 20/20 hindsight we would all be very wealthy indeed.
We can tell the ‘dog days of summer’ have been truly upon us as only 1 income issue (in our universe) has been announced this week (Saratoga Investment). The 10 year treasury has barely moved all week long and even the DJIA has moved in less than a 1% range.
We also note that REITs have not been issuing $25/share preferred stocks. The last issue that was sold was in March, 2018–almost 6 months ago. REITs have historically been huge issuers of preferreds (less than banks, but still huge). I have noted many, many issues of REIT common shares coming to market so they continue to access capital–just in a different way. Also many of them had sold preferred stocks in “refinancing” transactions (redeeming older high coupon issues and replacing with ultra low coupon issues) and it is likely they have refinanced all of the older preferred issues that were outstanding.
So as we coast out of summer we are certain that the markets will be plenty exciting in the fall as we will see a FED rate increase in September, which will minimally give us more return on our ‘cash’ holdings. Of course we will have elections in November which will very possibly change the political landscape of the country which will add plenty of excitement. We continually, as a nation, are faced with massive deficit spending and at some point this comes home to roost–will it be this year–or will it be 5 years or 10 years from now?