Common stocks are taking a nice leap higher today based upon a super outlook for earnings which will begin to be released for the 2nd quarter. Obviously this doesn’t make too much difference to us as we seldom own common stocks. On the other hand we sometimes own a few REITs, but they are not participating in the rally as REITs are off 1% today–just a breather as they have done well lately .
Interest rates are up 2-3 basis points–a meaningless move in the big picture of things–just noise.
Looks like preferred stocks and baby bonds are grabbing another 2 cents/share gain today. For months preferreds and baby bonds have been relatively stagnant–moving only pennies higher or lower each week. Now we are seeing gains that are meaningful and I think many of us that hold mostly preferreds or baby bonds have seen some decent gains in the last 10 days. For us any gains are pure bonuses as we buy them purely for income, but no matter where gains come from we always like GREEN.
Just a quick note that we did sell some of our Spark Energy Preferred (NASDAQ:SPKEP) today at the highs. As we mentioned last week we planned to back off a bit from our holdings as we are nicely in the black and we had about 200% of our normal allocation to the position and we wanted a more normal size allocation going toward earnings next month.