Yesterday was the 2nd nicely green day in our portfolios for the year–overall up 1/2%. With lots of dividends and interest hitting accounts late last week and the nice rally this week a person could get spoiled quickly. I was surprised how many issues in the portfolio were up 2-4%–I am sure many of you experienced the same gains.
This mornings we have the 10 year treasury yield around 3.70% flat from yesterday. Equity indexes are also flattish—with economic news out shortly we will likely see larger market movements. Also at noon today Fed official Bullard is speaking and he could say something entirely crazy–he is known to stoke the fire.
Yesterday I did nothing–in fact while I pay attention to ‘markets’ in general I didn’t check preferreds and baby bonds until after the market closed. My google sheet was so green I reloaded it to make sure the numbers were correct. I doubt I will do much today, but I do have some cash available for some nibbling–we’ll see.
Tim
Do you have a theory about why Allstate and Valley National seem slow to call their floaters? It appears that the market is betting that Zions will be slow to call its O issue in mid March with a price of $25.49?
Is the new issue market window so ‘iffy’ for these solid issuers to refinance at less than 8%? Could it be concern that regulators might be displeased with contracting equity capital (temporarily)?
I transferred a large preferred holding from my IRA to my ROTH Tuesday and watched it climb 3% since then. I hope the rest of 2023 I will be as lucky…..
Tim, after seeing red last week I decided to not look the last couple days. Looked this morning and my account is the highest its ever been.
I broke my own rule about insurance stocks and had an order in for WRB-PE hit at 22.49 luck of the draw the company has declared a special .50 dividend on the common which probably helped the preferred pop since we are a ways out before next dividend.
Don’t feel too excited about the market lately, wonder what the end of year reports will bring
As GRjoel said past 2 days have been the rise of the dirtbag/tax sell off issues.
BEPH I just bought jumped over 5% yesterday alone. Many like you said Tim, were well over 2%. I only regret not loading up a couple days ago on these. Should just be thankful for what I did as greed typically doesnt work long term for me. As you also mentioned, for whatever reason past couple days was a huge dividend dump for me. Many I sold on exD and forget about until the divis came this week. Geez, if I had a brain I could sell everything and roll into a 1 year TBill and lock in around a 7% return and call it a year already
GRjoel and Grid, better luck than me, I bought a couple dogs too soon last month, now waiting for them to rise with upcoming ex-div. dates.
I usually do as Tim has mentioned and try to buy no more than 30 days out from ex-div. This market is up one day and down the next.
Grid-
7% TBill? I looked at rates and am seeing maybe ~4.7%
What am I missing?
thx
Gary, I didnt mean that a Tbill paid 7%. If they did, I would have sold everything likely already ha. I meant the gains I collected in divis and appreciation already combined with what a 1 year TBill would pay would collectively give me about 7% for the year just by shutting it all down.
That would be a lovely way to call it quits for the year.
Plan on doing option income plays based on short / inverse positions this year as I’m still waiting for the real market smackdown to occur.
My view is stocks and high quality debt will move inversely this year.
See what happens.