I guess it is simply a case of ‘easy come/easy go’. The consumer price index (CPI) news was great this morning–but it doesn’t really matter as it is ‘old news’ and we have plenty of new news to worry about right now. Inflation for the future is the new worry–the hell with this old news.
As noted earlier I bought a little this morning–do I have confidence that this market is turning–no way. I hope it turns but I have low confidence since we all know that these kind of grinds lower in common equities bring everything down and you can’t get away from it unless you go to all cash. The problem with going to all cash because you think the world is ending is that you will likely never re-enter the marketplace. It is the buy high, sell low scenario.
There are bargains being made out there. I see the 5.9% preferreds of utility company Spire (SR-A) is off 34 cents to trade at $23.97. The preferred shares of the Gabelli Global Gold and Natural Resources CEF preferred (GGN-B) is off 45 cents to trade at $20.45 with the current yield up to 6.11%.
Well I will not be buying more today–would like to see at least a short term bottom being put in–all it takes is one tweet.
The only thing I can rest my hat on is the fact I’m destroying the S&P 500. But seriously, F off to this market, lol
Yesterdays’ bounce was overdone some of it was short squeeze. Just a bear market rally?
My own opinion, that and $3 will get you 1/2 cup o’ joe at SBUX, is that there’s probably one more big flush lower – 4500 SPX best case, 4000 worst case. Of course if we get a nasty recession, all bets are off.
Yaz, no way is my 2 cents. That and a cup of home brew. Interesting bit of history on when imports are restricted.
https://www.smithsonianmag.com/arts-culture/chicory-coffee-mix-new-orleans-made-own-comes-180949950/#:~:text=But%20during%20the%20American%20Civil,to%20stretch%20out%20the%20supply.
This is re-enforcing my theory we are going to see lower lows as we are still above the 52 week low. Hard to think SR-PA was lower when we thought the market was better than today.
I hold the spire one (they’re local) and say to myself they can pay the gas bill. Might add more. Munis tried to bounce but boy are they down down…near oct 2023…it’s fun to sell FI and rebuy it later. my fav talking heads note wider spreads (I’ve seen a dime or 20c on common stock that is usually a penny) and I think Chthulu (bond market) craves liquidity and they’re gonna need to drive people out of the short end of the curve.
I don’t like this market. The FED should set up another temporary alphabet soup facility to buy treasury bonds being sold by our enemies. We can call it C.R.A.P China Repurchase Account Plan
Dan; I completely agree with you on your comments. I really don’t like this market either. I have tried over the last month to get more & more “defensive” in nature. But amazingly even what many would consider pretty good values can go lower & lower. Here’s just one small example: Regions Financial is considered a pretty decent solid bank. Their preferred of RF+F is a 6.95% coupon and not callable till 9/15/2029 is trading at $24.52 which to me seems like a darn good value. Volume as I type this is over 28,000. I will also just say there are lots & lots of good values out there. Yesterday morning before the big announcement of the “Pause” I bought with both hands alot of MTB+J. I also “verified” with their I R MGR that it is not a floater and there is no reset rate. Not callable until 6/15/2029. Coupon is a 7.5%. Got a large bunch at $25.20 but now its at $25.50. Still not a bad price. GOOD LUCK TO ALL.
Chuck, I did the same thing. Got much more defensive and did it well in advance of this move. Bought lots of high-quality issues. Then liquidity completely dried up and everything is down. The only right move would have been gold. We got much more volatility than I think anyone was expecting. At this point going to cash would be too painful and I would lose [inflation] protection when the inevitable market rescue (aka printing press) occurs.
China did not start start selling T-Bonds….We are now in a full blown war with China…Our enemies are from within…
I agree with you, China does not need to take the loss. The Chinese economy has been hurt. Their money will go to stimulus not to buying NEW T-BONDS.
That is economic reality, not retailation. What are they supposed to do, keep buying T-BONDS and let their economy tank?
China’s inability to buy new US T-BILLS is a fallout of the tariff war.
It is so simple, you cannot buy new T-BILLS if you not have the money.