Time to wrap this week up. It looks like the indexes are likely heading lower again today with the S&P500 futures down about 1% right now.
Yesterdays S&P tumble of 2.5% was quite brutal and it appears maybe for the 1st time investors are accepting that we are not at the end of the tightening cycle–or if we are we don’t really know it. At the same time interest rates are telling us a very, very soft economy is just ahead–the 10 year treasury is at 3.46% right now.
Well I continue to sit on my hands, although yesterday I started back on my due diligence of regional and community banks. I continue to hold fixed-to-floating shares (CUBI-F) in Customers Bancorp (CUBI) and some of their baby bonds (CUBB). This is a target rich environment for 7% yields. My hesitation is because I need to trim some other holdings to buy some of these issues—and each time I review the holdings I don’t find shares to sell.
Well I am off to drive over 50 miles of snow and ice here in Minnesota–as a youth this was no big deal–as a old codger I would rather stay in my office, but duty calls so I have to go.