It seems like we are now just going to get a slow creep higher in our accounts and as I have said many times boring is ok–dividends and interest payments flowing and meeting my 7% target. As much as I say this I am obviously a bit ‘hooked on’ capital gains–double digit account growth is wonderful but addicting– and unrealistic of course. Just the same I search for the bargains–those securities that can give me a good yield AND a capital gain–maybe I need to concentrate more on just getting that solid 7%?
The 10 year Treasury is trading in a 4.00% to 4.02% range this morning. This is refreshing to see after watching the yield rise for a month. It’s hard to believe that it was just a month ago that we had a close at 3.65%. Amazingly the average $25 preferred has remained fairly steady so one could conclude that preferreds are a bit over valued–maybe by 1%. It seems that with writers and commentators touting preferred stocks we have had the potential losses mitigated as those ‘very (very) late to the party’ have supplied demand to keep prices up ins spite of rising interest rates.
Markets are quiet this morning-with little important economic news this week investors are waiting – some taking some profits yesterday, but all in all investors remain tepidly bullish. The youngsters (under 40 years old) haven’t seen a true grinding bear market to speak of where the indexes move lower and lower over many months–or even years. It will come someday, but certainly no one is fixating on it–just would like to avoid those 1000 Dow point drops.
flipped mtb j. nearly $28. it was yelling at me!! good div. but….
Thanks for the reminder- mine at 25.24 cost is looking profitable.
Common at a 3 yr high too ( not owned)
I have been buying SGOV for the past couple of weeks as treasuries and CDs mature and divvy/interest comes in. At roughly 5% SGOV overall and 15% other cash equivalents. Maybe we get that swoon soon?
Many 6’s close to par at the TBTF banks….So the Q is how low can they print new bonds? Roll em out now non call, or w a low 5 year reset.
We are seeing corp the 8%+ floaters getting yanked. Next up the 7’s. And maybe the 6’s.
Positive surprises on bank earnings feeding em. It’s all about the spreads for them.