I had anticipated equity markets being a little bit quiet this holiday week and instead we get action that is starting to look a bit more like the 1000 point down day we have been looking for in the DJIA. Watching price movement in the Dow it looks like there is little traction being gained YET. With each little bounce sellers come in–probably still need the big ‘flush’.
Of course thus far the fall in stock prices has not affected our holdings to any great degree–maybe we are off .1 or .2%–a fair share of it from the hated Spark Energy Preferred (SPKEP) which tumbled after clawing back to higher prices recently.
We have noticed the Dynagas LNG preferreds getting totally hammered, in particular the DLNG-A 9% issue. Here is the chart–off $5 in the last week or so.
The 10 year treasury is now at 3.03% as it continues to mirror the equity market tumble. The bigger news is that crude oil is off $3, I think this tumble will end soon, but if the economy softens ahead $55 crude may become the norm–we are just too darned good at shale drilling and production in the U.S.
For now we are sitting tight (which is what we do 95% of the time) nothing really to do.