Yesterday markets started off yesterday with large gains on the back of Nvidia earnings, but as the day wore on those gains evaporated and the S&P500 ended up down 3/4%. It sure didn’t help that the economic news of the day came in quite a bit stronger than forecast.
Initial jobless claims were lower than forecast–then the S&P Services PMI came in extremely strong as did the manufacturing number. These indicators rose at their fastest clip in over 2 years. Obviously these are not favorable for interest rate cuts–so once again–it seems on a weekly basis all the talking heads start the talk of no cuts this year or if there is 1 it happens very late in the year. These stronger numbers then moved the 10 year treasury back up–moving into the 4.50% area until backing off a bit to 4.48% which is where it closed and is trading at this level at this time.
So this morning we have durable goods orders for April–expected to be soft relative to last month. Consumer sentiment numbers will come shortly after durable goods. These SHOULDN’T move markets but who knows what will happen.
Yesterday the low coupon, quality income issues took a hit–many down around 1%. Our portfolios took a hit–nothing to get worried about, but I am spoiled and all I want is up, up, up. May was a lighter month for CD maturities so I haven’t had lots of interest payments hitting accounts–June and July are going to be stronger interest payments so hopefully can get the account going in the right direction.
No buying or selling by me yesterday–and I doubt anything will happen today either–we’ll see.
Tim… Good day for Bargains. ..6.5 to 8 % returns… Georges
Stress reduction…..
I’ve separated my investments into two segments:
1) 55%
CD’s, T-Bills, and BB’s with maturities below 2030
Yield CD’s/T-Bills 5.6%; BB’s 8.0%
2) 45%
Everything else (Pref’s, Commons, BB’s longer than 2030)
Div/Int yield 7.0%, YTD Cap Gn 2.2%
Yesterday’s Business Growth that knocked the Dow down 600 impact:
1) Up .0.05%
2) Down 0.87%
“Market moves don’t both me”
What are “BB’s”
Thanks.
janes,
Westie is referring to baby bonds, exchange traded debt with $25 par value. Hope this helps.
janes
Check out the Baby Bonds column to the right
Added to my Spire/A @ $23.40 yesterday. Will be adding more on dips…
Good title for a post on the gyrations of the markets! I personally had a nice runup the last few weeks, but gave some of it back the last two days. Needless to say I did not lose any sleep last night when I saw my portfolio dipped maybe 1/2 percent yesterday. It goes up, and then down a little. No need to panic! I am more concerned on where to re-invest the NuStar preferred stocks that are being redeemed June 3rd. I own full positions in A,B, and C ones. That is a chunk of change to replace as all were floating to the tune of 11 to almost 13%. They have been nice to own and I can only hope to get anywhere near them with replacements.