If it not one thing it is another.
For years we were concerned with the financials of most of the Europeon Union countries and then we weren’t worried–forget that most debt issues of these countries has NOT been addressed. Many of these countries are just larger versions of Greece. They have more debt than they will ever pay.
So now the answer to traders and some investors is to sell various European bonds and “buy American”–reminds us of 5-10 years ago.
My suspicion is that the European central bank will ‘deal with’ the Italian problem–it won’t be a long term solution, but it will placate the global marketplaces for the time being.
Of course the 10 treasury has fallen further than it has at any time this year. Currently off 12 basis points and trading around 2.82%. We think that once it bases it will move up a bit from here–but the Italian worries could stick around a week or two. Also with the employment report we have this week there might have market moving consequences.
Today almost all income securities are up a tiny amount–the 400 point fall in the DJIA has not affected us thus far.
Income investors should mostly sit back and observe–no particular actions are likely helpful or meaningful to income investors.