Well we got the personal consumption expenditures number today and everything for the most part was right on forecast. Next week the big number will be employment which comes next Friday.
The 10 year treasury is trading around 4.23% or so helping to relieve my rate anxiety—so today I start shopping again for something to buy. No doubt I won’t buy bunches of anything but will once again be looking to buy something with what I believe is 3-4% capital gains in the next year, coupled with a 6% (more of less) yield.
Looking at my accounts they all end up higher by 1/2% on the month–just like January. Of course this shouldn’t be a giant surprise since the average of my portfolio holdings is right around 6% annualized right now. This is ultra conservative, so you that have more perpetuals probably whacked my performance by 2x.
Equities are starting off a little higher today–we’ll see if markets can hold their gains, unlike recent days.
Southern’s most recent baby bond might fit the bill for those not minding 2085 maturity.
SOJF, 6.50%, BBB, 5 years call protection.
Yielding ~6.28% at $25.86, first interest payment in mid-March.
I bought a ton of it at $25.07 before it actually started trading on the normal markets. Schwab called the Dealer and got the deal done for me. I just had a sneaky hunch that this one would go higher. I don’t flip just hold on to it though.
If I had a wayback machine- I’d be looking to buy UK:RR Rolls Royce.
Yowzer.
If I could flip a switch and get a safe 6% on my entire portfolio, I think at this stage, that would be great. Yet am still about 50% into equities. Some habits just hard to break.
If you want to see a peak into the future of where we are headed look at Corp. Bond Prices over just the last 4 to 6 weeks. Prices have gone “Substantially Higher” which of course kills your YIELD. Just as one example I bought (6 weeks ago) a J M Smucker Bond with a 6 1/2% coupon at $103+. Today its over $109. As I said just a few short weeks ago its getting tougher and tougher to find anything worth buying. And at my old age I refuse to buy the junk that keeps getting issue.
Chuck, I liked the comment I think Pig Pile made his dad doesn’t buy green bananas anymore.
To paraphrase J.D. Rockefeller sr- Nothing gives me more pleasure than seeing my green bananas maturing- a golden pay-off.
One of my first stops at Trader Joe’s
-sorry….
You are looking for cap gains. But if rates do fall by this Summer or let’s say by end of the year… and if you snag 6% + yield, wouldnt you just sit on them? Why are you looking for cap gains? To flip?
I for example have many in the 6% + range that I bought last year. COF series, LXP-C, UMH-D, and several others. And have started buying several new ones for this expectation like AFGE. But if rates fall, I will probably just continue to sit on them. Why? Because when would rates then rise again dramatically?
Agreed Mr. C I thought we are in it for the income? If we don’t cash out the capital gains are secondary as they could one time while the income should be for the long term.
These are my speed too. I don’t mind qualified dividends or MLPs either.
Any others that you are particularly happy with?