While there was a time when I would react to global war type situations, time and time again, they have meant little to income investors.
The situation in Baghdad yesterday (the killing of the top Iranian general) brings out a ‘knee jerk’ reaction with stocks falling a bit and interest rates moving lower in a small flight to safety–but unless we see some kind of major escalation in the tensions it will be just a ‘knee jerk’ reaction.
We could see a minor move higher in the quality (i.e. Public Storage) low coupon preferreds as a small amount of excess buying pressure comes in–but likely not anything more than that.
So, for now, there is not a reason to get nervous on your holdings–let’s watch for potential escalations.