But really the selloff of common shares is really quite orderly and certainly is not a panic selloff. We all know common shares have been near la la land–so a 800 Dow point drop is not frightening or unexpected.
Of course I care about baby bonds and preferreds and the damage there is not dramatic. Right now the average share is off 14 cents, but there are over 150 issues down by over 1%. This is a larger reaction than we have seen in recent months to common share selloffs–but still minor.
Interesting to see quite a few utility issues off 1/2%- 2% or so–but given the levels they have been trading at being down 1/2% to 2% doesn’t make them a bargain–but worth watching.
Investors should keep an eye on the S&P500 and DJIA and see if something more serious develops later in the day. If we were to see the 3% drop turn into 5% later today we would start to see some ‘baby going out with the bath water’–maybe a chance to deploy a couple percent of dry powder in quality issues.