Well we have seen quite a move higher in equities overnight as the elections appear to be settled. With the higher equities we have interest rates moving sharply higher as well. We all know that by the end of the day we can have a vastly different scenario.
With all of the volatility, it seems like a good day to ‘watch’ and not participate in any buying or selling. With the spike in interest rates one would normally see preferreds and baby bonds heading lower–in early trading that is not the case–more of a 50/50 green/red split–the buying party in common shares is lending support to the income issues-for now.
Maybe tomorrow I can get back to some serious hunting for something to buy, but for now–until we get a day or so behind us just going to watch.
I have a feeling nobody is really sure of what they are doing today. But doing something they are. Me? Same as always.. just waiting to get paid. I have no advice what so ever that is even remotely useful.
Retirement stuff I barely pay attention to. It is on cruise control.
Capitalism supposed to have positive yield curve . That’s why banks are up 10% today
I did some modest selling I don’t trust the rally there’s too many headwinds, Shifted some to International equities.
Martin, agree with your sentiment, rally will be more of a reallocation to perceived Trump stocks. Wish I had a crystal ball, but haven’t made many moves in last bit of market disruption and no worse for wear. Must be in the right stuff. Most of my preferred’s are down a bit in last several weeks but common’s grinding up.
What a weird dislocation in my portfolio today. I guess I didn’t realize how much I had in “clean energy”. BEP, BEPC, ENPH, FSLR, NEP, etc. Those stocks are getting hammered. Even stuff like Lowe’s and Home Depot and Realty Income (O) and Iron Mountain (IRM) are taking a decent hit. I’m down about a half percent when I usually track the larger indexes pretty closely. It’s tempting to add more, but too much uncertainty right now.
When interest rates rise, home builders, REITS, and home improvement stocks get hammered. I think now that we have whipped inflation, the market is indicating nervousness that the new president will bring on inflationary policies. Nothing he has said makes me believe otherwise, and if he truly follows through with politicizing the Federal Reserve, we will have big problems.
Hopeful what he said was just election blather.
FOMC on Thursday. Imagine another rate cut lowering short-end yields, while the long end rises. Easing at one end, tightening at the other. Who benefits and who feels pain?