139,000 new jobs were created in the U.S. which has sent equities into ‘party’ mode. The forecast was for 125,000 new job creations. The last 2 months were adjusted down by a whopping 95,000–really doesn’t give one much confidence in the accuracy of this report.
The 10 year treasury has moved higher on the employment news and is now yielding 4.47%–up 7-8 basis points.
So today once again I will do nothing–no buying or selling–BUT next week I will need to wade in for at least a couple buys–probably smaller buys. Kind of the way I have been doing my buying is that as CDs mature (mostly 3 month issues) I reinvest 75% of the proceeds in CDs and then 25% into a more rewarding (higher yield) issue. Slowly, over time, I am moving my income higher–it is working good thus far my monthly income is maybe 10% higher than a few months ago. Just observing the economic data I don’t see any reason to rush my purchases of higher yield issues–interest rates and the economy seem to be kind of ‘stuck’ right now.
As almost always I will be working off the Short Duration Baby Bond & Term Preferred list (although I noticed Google Sheets is very balky this morning) or in a pinch the ‘hiding spots list‘. Regardless of my fears I want to keep moving forward with my plan.
May’s figures are pretty much meaningless as they are subject to revision, however the figures for the preceding months are not meaningiless. They suggest a gradual slowdown and a slow but steady rise in unemployment. Now we wait for the May revision.
“The last 2 months were adjusted down by a whopping 95,000–really doesn’t give one much confidence in the accuracy of this report.” Yes and these adjustments never really get back to Mr. Market. More likely another mark down next month of his sugar high the market feels today . There should be a 3 month moving average to smooth out the data.
Payday–markets seem to totally ignore the adjustments–but this market seems to ignore most items of importance.
i like argo-a right here(below par) from your hiding spots list.
most likely called on 9/15
Caution- merged with the ol’ vampire Brookfield, but you’re probably correct- it looks to have little life left or a very high yield at reset.
I like the BB’s but am waiting for the quarterly report to confirm their turnaround. The report seems late.