Stock Sell Off Spills a Bit Into Income Issues

The DJIA is now down 455 points as the FANG stocks get hammered because of privacy issues as well as just poor management (my take is some like Facebook need some adult supervision since the top folks don’t seem to garner confidence with anyone that they take the businesses seriously).

Honestly we don’t care too much about big sell offs in stocks, but today because of the REITs taking some hits many of the REIT preferreds are getting spanked a bit–not hard–but 1/2 to 1% and thus average shares are off 4 cents.  Part of it is the REIT preferreds which jumped big time last week on foolish buys by investors (speculators I assume) because they declared a quarterly dividend–maybe their last–we shall see.

The 10 year yield started off the day up 3-4 basis points but the lower the DJIA goes the lower the current yield goes and it is now down to 2.84%.  It should be noted that short rates such as the 2 year treasury is still up a couple ticks as it reacts to the anticipated Fed Funds hike on Wednesday.  It is amazing that the 2 year is trading around 2.28% and the 10 year at 2.84%—I think if I was a treasury buyer I would opt for the 2.26% rate.

Personally today we see our accounts down as ALL of the Gladstone issues went ex-dividend and we hold way too many of the term preferreds.  The only Gladstone issues we don’t own are those related to REIT Gladstone Commercial as their preferreds are perpetuals.