With equities off around 850 Dow points at this moment I reviewed the $25 preferreds and baby bonds and find they are getting slightly more attractive with the average price off 9-10 cents today–not exactly a bargain, but heading in the right directly.
When we have sizable down drafts in common shares a point will be reached where ‘the baby goes out with the bath water’. Where is that point in time? I think it is way lower on the S&P500 than the current level–no one believes this is an inflection point in equity prices–sure a wiggle of a few percentage points–but ‘buy the dip’ is likely to come in soon – maybe late today or tomorrow and common stocks will move back higher.
As I reviewed my holdings today they are for the most part unchanged–some up a dime, some down a dime, but on average unchanged.
I will keep my eye on the market closely and be there to buy if true bargains are created, but I won’t hold my breath waiting.