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Jobs Day!!

In an hour we get the official government number on job creation in April. Forecasters have a 240,000 number with unchanged unemployment at 3.8%. Importantly hourly wages are predicted to rise .3%–this is an important component as other data had shown wages rising faster than expectations. We’ll see.

Equities are up a fair amount this morning as Apple earnings are providing a boost to the DJIA. The S&P500 is up a modest amount–we’ll see if gains can be maintained after ‘news’. The 10 year treasury is at 4.57% now–subject to large moves if we get employment numbers far off forecast.

I mentioned last night I was searching for preferreds in the closed end fund arena. I have found 2 actually–one is a pure safety pick and the other a bit on the wild side (at least for me). I hope to buy this morning and will post a note when I have locked some shares down. Certainly these will be starter positions as I am in no rush what so ever to transition from my CDs which have provided solid income at a nice interest rates–why move quickly when higher interest rates will be with us through most of the year.

Let’s get to going!!

6 thoughts on “Jobs Day!!”

  1. NFP jobs numbers are statistical voodoo that gives speculators an excuse to move the market up or down. Note how these numbers often get revised, sometimes in a huge way opposite to the supposed surprise at the time they were initially reported. Yet the market rarely reacts to these revisions which are more reflective of real world job numbers. For me, NFP does nothing to change my macro view of the economy and outlook on rates. Powell can use this number in his pressers but I doubt they put much value on the unrevised number.
    I sometimes use the overreaction to NFP as an opportunity to add to positions that drop in price that day.

  2. Tim, You bought a starter position in NLY-F for the high risk bucket which is a mortgage RIET and a new sector of the market for you. Today you said you might start a new position in a CEF preferred to balance it with.
    I am guessing part of your risk strategy is to spread the risk around instead of adding to existing holdings? Spreading the risk also means going into other sectors of the market like picking up the Annaly Preferred?
    I am going to guess from your mention of NYCB that you looked at getting back into bank preferred but decided not yet.
    When I did my recent transfer of an account to FIDO the advisor I talked to was surprised at the diversity of my holdings, but part of the reason for that is to spread the risk around.

    1. Charles, the one time I interacted with a FIDO advisor, I heard the same thing or similar: “you have a lot positions” or something like that. Yep. I do. I study carefully before I buy. I don’t buy enough to ruin me or my plan should things go awry. I don’t watch them as close as many folks I suspect. I have learned so much and continue to from this place. Thanks to all.

    2. 2nd on – any luck with the CEF? I’m always keen to read the ideas here. What a wild time in the market….

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