Looks Like Santa Is Only Bringing Coal

Another rough day in the equity markets–although maybe prices have found their bottom for the day. The S&P500 is off about 4.3% from the 52 week high so hardly a ‘correction’ (actually not a correction at all–just kind of a wiggle).

Interestingly interest rates have moved a few basis points–and checking my accounts they are just as ‘quiet’—very quiet.

The week appears to be a quiet one for income investors–and I suspect for new issue issuance–who wants to mess around with new issues when it is a holiday week and folks are rushing to do some last minute shopping (I know I will be tonight–no use rushing these things!!).

For now I am doing zip–nothing at all investment wise. I have boatloads of monthly payors and they are doing the job right now–not sure I want further commitments before the new year.

14 thoughts on “Looks Like Santa Is Only Bringing Coal”

  1. Considering the prices of Met and Thermal coal, I’d be glad to get some of that in my stocking this year! Great year for some of those energy companies.

  2. Santa needs to show up. I have the median preferred down 1.1% YTD while babys/terms are down 0.1% YTD. Adding in dividends/interest makes for a positive total return. Certainly better than the taper tantrum or Covid trantrum losses. Guess we should be happy with low single digit positive returns. Certainly many III’ers did better than this. . .

    You might be shocked to hear what some of the top performers were. Hint I was 100.000000000000% wrong on my forecast for them.

    1. Tex, I have had a darn good year, one of the best. Well actually one of my best 7-8 months. Every flip strategy work. But I have largely been spinning my wheels the past quarter.
      Im not feeling so good about next year right now. Maybe I will call Somers and see if they will let me buy more WTREP so I can clip the 7.5% coupon and not worry about the stock price since it doesnt trade anymore, ha!

    2. “You might be shocked to hear what some of the top performers were. ”

      Ok, I’ll bite. What were they?

      ” I have the median preferred down 1.1% YTD ”

      This is surprising given that PFF is near YTD highs. Quite a divergence between the median and average market cap weighted.

  3. I’ve just been flipping UPRO lately. With the current volatility you can make an easy $500 every week without much risk…gotta get that weekly beach money.

    1. $500/week every week without much risk…. Pretty soon your beach is going to be Matira Beach in Bora Bora with dinner at Bloody Mary’s……lol

      1. No….that would be too risky for me. The UPRO strategy using SMAs, RSI and MACD hits 100% of the time….I’ll just stick with that.

        1. I also like the correlation of the slow stochastic and the MACD. Probably correct on increased risk- and more trading time.
          Diff ballgame if the market takes a big dump– then, just put a bunch on each of the 3x Inverse Proshares, or wait for a start to a turnaround, and get the UltraPro 3x, and hang on!
          And buy the bargain preferreds & notes, etc.

          1. 3x inverse funds are terrible investments unless the market goes straight down, which it rarely does. If you want to short the market you’re better off buying 1x funds with 3 times as much money. They’re also losers in the long run but not nearly as bad.

  4. Also sitting on my hands waiting for some real drop in prices.
    Pleased that my portfolio is off only 0.10%, while the Dow & S&P500 are 17x that.

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