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For the Most Part a Quiet Day

It appears that markets are waiting on the Fed for Wednesdays announcement of the rate hike–or more likely they are waiting on the Fed Statement and Jay Powell’s press conference.

Interest rates are up 4 basis points today–that’s fine after the tumble in rates last week–we can deal with 0-5 basis point moves.

The Chicago PMI reading today came in a bit softer than expectations today–indicating a little bit more contraction in the manufacturing sector. Economic indicators are now almost uniformly soft–but not exactly super softer. These numbers feed into the Fed ‘needing more data’.

Today I bought more of the Priority Income Fund 6.625% term preferred (PRIF-F)–I already owned it and just added to my current position. That’s it for today (and probably tomorrow). Like everyone I am waiting on Wednesdays rate hike and press conference.

5 thoughts on “For the Most Part a Quiet Day”

  1. As retirement gets very close , I am loving the the current market conditions for IG preferred and BB securities. Locking in good 6.3- 6.8% fixed income securities with nice capital gain potential , if ever realized. I have taken gains from stocks/CEF funds and reallocated the funds to these income securities. I only wish I had unlimited funds to invest right now. Thanks for all the wonderful, educated, thoughts on this channel. I am so glad I came across this site in my securities analysis.

    1. Me too! Retirement scheduled for EOY 2023 from NASA. Been working on developing a divvy and divvy/growth portfolio since 2017 and it’s working well. This year, I have been rearranging “chairs” with my preferreds to best manage risk/reward (yield) and this site has helped tremendously!

  2. Windy, guessing it might depend on the flow of money. In the past, when rates went higher money from overseas flowed here to take advantage of the higher rate of return. To compete for the funds other countries raised their rates to also attract the money. But the double whammy of inflation and teetering on recession will make it difficult for them to match the increases here.
    Remember a few weeks ago funds in GB sold assets to cover redemptions. There was a drop in some good quality stocks here, some hit new lows but recovered

  3. wd, Not good! Sounds like textbook euro-stagflation is developing.

    On this side of the pond, something hit the rate market hard just before closing. Ten year spiked and pfds fell off. A yawn of a day turned into a fire-fight and we added to four positions in the last 15 minutes.

  4. Bloomberg headline: Euro-Zone Inflation Soars to New Record as Economy Fades
    “Euro-area inflation surged to a fresh all-time high, while the bloc’s economy lost momentum — reinforcing fears that a recession is now all-but unavoidable.”


    A European recession would hurt the US economy. I wonder how much this factors into the FRB thinking on rate hikes? Not that the Fed is trying to manage Europe’s economy, but that this allows them to not be as aggressive on rates hikes, knowing that European rescission will do some of the work for them?

    What a juggling act among global central banks that affect citizens of the world! And our FRB is the lead juggler.

    Cheers! Windy

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