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Good News Sends Stocks Higher

Finally after waiting for weeks we are seeing some good news–or at least ‘hopeful’ news.

States are beginning to slowly reopen some businesses–and this at least gives me more hope than the daily beat down of terrible stories. On the other hand it may not work out–maybe there will be an explosion of Covid 19 cases–but for today it is good. On top of that it will be sunny and 71 degrees in Minnesota today–always helping to raise spirits.

While the good news helps brighten the day, honestly there will be so much bad, sad and terrible news in a week, a month or a year that one doesn’t want to let their good spirits let them get carried away. On the other hand I think I will buy something today–actually I already bought a few more shares of the AMG 5.15% Convertible trust preferred (AATRL)–an investment grade issue with a current yield just under 7%. I have been drawn to this one over and over–I can’t help but strongly believe it will trade $10/share higher before the year is out.

Also I am looking for a taste of a mREIT preferred or lodging preferred–just a taste. And while I am at it maybe a taste of Associated Bank preferreds-with a current yield of up to 6.4% —I had originally thought Customers Bancorp preferreds (CUBI), but I am trying to stay away from the Fixed to Floating issues–with 3 month Libor at 1.18% today FTF issues are in a position to see their coupons fall once they hit the floating rate date (usually 5 years or so after issuance).

Likely I will add just a few percentages to the portfolio this week–we’ll see.

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