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Party On!! Not a Bad Time to Bank a Few Capital Gains

I have watched the equity indexes go higher and higher–good news is great news. Also apparently ‘fake news’ is great news also. I think todays employment report was pretty fake–meaningless.

For many reasons the economic news is fake. PPP (paycheck protection) money is being used to keep folks on the payroll playing tiddlywinks so they don’t hit the statistics. Company earnings are fake as they are receiving a tax credit for keeping folks employed (compliments of the CARE act)–I noticed Best Buy showed profits of around $150 million on the quarter, but they had tax credits for keeping folks employed of $60-70 million included in there. Also companies are able to defer paying the employer portion of the FICA taxes until next year–so more money the Federal government won’t collect (at least for now)–you would think the government was solvent.

Things are pretty fake all around–oh well, nothing we can do but enjoy the party.

I’ve had my 70-73% invested position for a month (more or less) and the 1st of the month brought some nice dividends and interest payments–June will bring another batch in.

I decided today to do a little selling–not bunches, but a few percentage points. Even quality utility and closed end funds get to silly prices–or at least darned high prices. I would be just fine holding these issues, but am a bit nervous with crazy high prices. At this rate I won’t get above 73% anytime soon.

I sold some of the Spire 5.90% perpetual preferred today (SR-A). I had paid $26.20 and sold for $27.20 to book a capital gain. This one I have been in and out of many times–each time booking 3-4% over the course of a month or so.

I also sold some of the DTE 5.375% baby bonds (DTJ). I had a very large capital gain and had just collected an interest payment so I let 1/2 the position go at $26.16.

All week I have watched the new issues come out and while I was willing to pay $25 for some of them they opened too high and I didn’t chase.

I anxiously await next week.

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