Once again we had a strong jobs report today – or at least we had fewer initial jobless claims than expected. One more arrow in the quiver of the Fed for a 50 basis point rate hike on 2/1. Initial claims came in at 204,000 versus a forecast of 223,000.
While equites fell pretty hard on the jobless news and have stayed down interest rates which ‘popped’ 5 basis points are now down around unchanged–actually up 1 basis points.
A quick scan at the preferred stocks and baby bonds finds them mostly green–again. It is obvious that bargain hunters are on the hunt after the December sell off – there remains decent buys out there even after this nice bounce. I see that the Affiliated Managers investment grade baby bonds are still yielding around 6.6% to 6.7%–they were 6.9 to 7% last week.
Haven’t looked at my accounts today, but expect to see them green–doubt I will do anything today.