Yesterdays close in equity markets was really poor as selling continued right into the last minute–that pretty much wrote the story for today’s opening.
Yesterday was the biggest drop in preferreds and baby bonds this week–and likely moved our personal accounts back to break even for the year (with a 30% cash position)–or maybe even a little red overall. The baby is going out with the bath water so we will see if that continues today.
For today we will review accounts–and again, likely do nothing–while we see lots of securities we would like to own it seems likely that we are going to keep powder dry until we get to Monday–and then re-evaluate.
The CEF preferreds have remained fairly strong–being down just 20 cents from their all time high–no doubt folks their are feeling good about their holdings and the safety of the required 200% asset coverage ratio. I would love to have a bunch more of these–but they are not cheap and it is hard to justify purchases right now to capture a 5% current yield. I will be watching these closely–I wouldn’t mind a tumble in them, but I doubt we will see it happen.
So buckle up–let’s see if we can get some stability after what is likely to be a 600 point DJIA drop.