As the situation in Turkey keeps simmering global investors do the ‘rush to safety’ move once again sending the 10 year treasury down -4 basis point to around 2.85%.
As I glance at the Master List of $25 issues it appears that the safety play has probably moved share prices up by a few pennies–I know for sure it has had little to no impact on our personal holdings.
Obviously equity holders have been sellers today with the DJIA off 280 as I write–but of course this is nothing–we will worry when the DJIA falls 750-1000 points because at that point in time the evening news and mainstream media play it as a disaster. Small players who have bought at high levels now sell at low levels and head for the cave in the backyard. This is why the average retail investor earns 2.5% annually–instead of the much larger amount they brag about.
Remember that preferred stock and baby bond holders will not likely be hurt in a stock market tumble until we reach the point of pure panic and investors rush to toss the baby out with the bath water.