Yesterday was spectacular for investors. I assume everyone made money–lots of money.
I think the market melt up yesterday was more than a little overreaction to the minimally improved inflation numbers–once again way too much money out there on the sidelines and folks just couldn’t resist piling in because ‘the top in inflation is in’–well maybe.
On the other hand gains in almost everything is a refreshing pause in the non stop drubbing investors had been taking and folks should take the opportunity to rearrange portfolios if necessary. I have very little cash available for investment right now so can’t do much buying, but in general my course is locked in – whether the markets are up or down I will nibble where I see opportunity (assuming I have cash)- I am not smart enough to call bottoms or tops.
S&P500 futures are up mildly today – 1/2%. Where it finishes no one knows. The bond markets are closed today so we won’t see if the 3.81% 10 year yield holds–and it will exert no influence on equities.
Today we have just the University of Michigan consumer confidence index and inflation expectations number being released at 9 a.m. (central) which should be no influence on markets.
7 thoughts on “Let’s Wrap It Up!”
Nice short covering rally that might extend to 4100 area. But I continue to sell rallies because of the chart above and the fed still hiking rates. They always hike to high because of the lagging data.
yup – downside is not done yet I do not think.
YES! I had a small hedge in case we went down but it was tempered because of the big down day before – so I thought risk yesterday was upside. And boy was it ever. My hedge was short the Qs (via inverse ETF) and it got stymied but it was literally only 0.8% of my portfolio. The 99%+ side was every single stock up and some of my preferreds up huge. I have only 8% cash left so am not buying much here but have been rearranging things a bit. Thanks for this site!
Yes. I also took this opportunity to rearrange things a bit. I sold at nice profits most of the junkier 8-10% yield issues I recently purchased. I increased cash while buying FHLB 15 yr. bond @ 6.98%, ARES Capital 2 yr. bond @ 7.26%, KTH and KTN.
Wish I would have bought more of the FHLB bond at par as the ask has now moved up. Not too often you can get AAA paper yielding 7%.
I agree. What is the CUSIP of the FHLB bond? On the finra site I am unsure what name to put in for the search. Thank you.
FHLB 2037 bond cusip is 3133ENY95
Thanks GRjoel! One question, when I look this up on Finra, it shows a last trade of $100.62 and last trade yield of 5.637%…yet the coupon is 6.980%…should the last trade yield not be 6.980%? Is the 5.637% last trade yield maybe being affected by the call date of May 2023?