Silliness is the best way to describe the reaction of the stock markets to any news out there on interest rates. Nothing at all has been said or written that changes one damn thing that we didn’t already know.
When we left the office for 90 minutes yesterday the DJIA was up around 200 point while the 10 year treasury was in the 2.93-2.94% and I would describe markets as quiet. When we came back near market close the DJIA had fallen 400 points from the high and interest rates had fallen as well. All on the release of Fed minutes from last month–what a damned joke.
Now as long time readers know silly movements like this don’t change anything we do–we can’t change on a dime–and won’t. We are looking for short/medium maturity securities—period! We aren’t traders–we don’t have the time to hang around watching for wiggles in markets–and if we did have time we wouldn’t do it–our mind is a more buy and hold–not trading. Kudos to those that can grab an extra quarter here and there by flipping income issues.
Yesterday when we mentioned we bought some Atlas Financial Holdings 6.625% baby bonds we neglected to mention that we purchased some shares for our personal accounts–anyway we did.
We hope to add 1 issue today in the High Yield Model--maybe even 2. We will write on these tonight.