Well we are 45 minutes away from interest rate announcements from the FOMC at 1 p.m. central. It is always fun to watch the algo’s move markets up and down at 1 p.m.—just noise.
No change is expected and will be delivered–as is usual verbiage in the announcement will be parsed down to the word. The presser after the announcement will of course be very interesting.
Not doing anything today at all relative to markets. Minimal cash–but a huge bunch of CDs maturing on the 15th of February–somewhere around 5-7% of my portfolio.
It is interesting to see the 10 year trading down in the 3.96% area–seems to be in a range of 3.80% to 4.20% now—and interestingly the economic news remains mixed—some hotter than expected and some cooler–dazed and confused again. I don’t really expect that I will change my 7% goal and will continue to move into a higher ratio of preferreds and baby bonds as long as MY expectations are met–my expectations are a rate cut in May and 1 or two more later in the year BUT potentially sticky interest rates on the long end based on the need for Treasury to need to continue to flood the markets with paper.
Todays ‘disaster’ was the earnings report from New York Community Bank (NYCB) which reported a huge loss on 2 loans totaling $500 million. NYCB-A is trading down $3.33 per share at $20.28. The common shares are down $3.83 to trade at $6.55. This has been my fear – smaller banks that surprise markets with large losses. Thanks to Bea for pointing this out earlier today.