Stocks Modestly Lower with Mideast Unrest

Well Israel launched a very limited strike on Iran overnight. When it was first announced equity futures plunged over 50 S&P500 points (1% more or less)–but by this morning that had been reduced to 25 points as of 5:30 a.m. (central). It looks like the limited nature of the strike is welcomed–maybe it will remain limited.

Interest rates which had popped back up to 4.63% yesterday are now at 4.57% as the strike caused a modest ‘rush to safety’. Oil had spiked, but it too has calmed and is actually a bit lower this morning from yesterdays close. Who knows what will happen in the near future–no one of course.

Yesterday we had mixed economic news–unemployment claims a bit lower than expected, existing home sales lower than anticipated, but Philly Fed manufacturing much stronger than expected. Leading economic indicators (LEI) were softer than expected–again–it has fallen consistently for 2 years except for a positive number in February.

As I mentioned yesterday I planned to add a bit of a BDC baby bond to the portfolio–to add to a current position. I added to my Saratoga Investment (SAR) 8.50% baby bond (SAZ) position which has a current yield of around 8.4%. This high yield purchase balances the purchase of the RiverNorth Opportunities Fund 6% (RIV-A) A1 rated perpetual preferred. This is a very tiny move in my heavy portfolio CD weighting—no rush on this shift—maybe it takes place over the course of years (not months). With money market, treasuries and CDs available over 5% what is the rush?

No portfolio moves contemplated today for me. Next week I have bunches of CDs maturing and will be rolling most of the proceeds with a tiny bit of the proceeds shifted over to preferred stocks and/or baby bonds.