Everyday I ask myself if I should ‘book’ profits in many of my current holdings.
Many, many issues bought in the December to April period have very tasty capital gains–anywhere from 4-20%. Of course there is a sprinkling of issues which are showing losses – most in the 1-2% area. These gains include many, many banking issues, lodging REIT issues and insurance issues. You all know which issues I hold since I post them, but specifically some of the bigger winners are preferreds from Jackson Financial (JXN), Lincoln Financial (LNC), Bridgewater Bank (BWB) and Associated Bancorp (ASB).
So each day as I ask myself ‘should I sell’, my response to myself is ‘what are you going buy?’ and ‘is there a high current risk in the issue?’. Thus far I haven’t located superior (better reward for the risk) issues to buy – although I can answer that with all the small banking issues that I own there is some risk. So for now I hold–although some small banking issues may be trimmed if I can located superior risk/reward opportunities.
Today we get the JOLTs (job openings and labor turnover report) at 9 a.m. (central). Every labor related economic stat will be scrutinized, if for no other reason than one can not help but believe that the Federal Reserve chair wants to see higher jobless numbers. I am convinced that job creation and joblessness is something Jay Powell wants (badly?) to see weaken–whether that happens or not is debatable.
Have you noticed oil prices? I noted them a couple weeks ago and they have continued to climb since that time–I see west Texas intermediate is trading around $81/barrel this morning. Relative to a year ago it remains way down–but since a month ago we are up $12/barrel–this is meaningful. So we will eventually see this feed through to inflation–whether it takes a month or 3 months is the question. Additionally we are seeing higher gasoline prices – locally I am seeing around $3.70 for 88 octane–if you are my wife who uses super premium in her SUV you are paying $4 to $4.40–ouch.
Well equity futures are soft this morning–will we have a rare down day? Each time in the last few weeks when the market has softened buyers step in to drive it higher yet. When I see earnings like Caterpillar (CAT) come in at a strong $1/share beat on estimates I am impressed – obviously inflation has been good to some company’s.