UPDATE–the average $25 baby bond and preferred is now at $16.50/share.
Leave the office for 90 minutes and come back to dramatic destruction–I mean my little bit of New Residential NRZ-C down 40%–yikes!! I had a sell in, but obviously it didn’t trigger.
Utilities preferreds and baby bonds off 20%–the portfolio looks like swiss cheese (no disrespect to the Swiss people).
I would say there are massive bargains out there–but WHO can define todays bargains.
While we are off 10% for the year I feel fortunate–lots of cash on hand in accounts and some very successful hedging (until the last few days) have minimized losses.
Unfortunately the writers on Seeking Alpha are all playing the hero roll and continue to write ‘buy, buy, buy’—what fools. Folks that interpreted their (the writers) success over the last few years as skill and wisdom will be down 75% before this is over–it may take a lifetime to recoup their loses–but most will liquidate and never ever invest again–instead opting for a mayonnaise jar in the back yard as a safe haven.
Early this morning I sold some of my VER-F 6.70% preferred and my AMH-F 5.875% perpetual–put the money in the cash stash.
Now I wait–obviously I am still heavily exposed to utility baby bonds, preferreds and CEF preferreds. I want more–but I guess I want them cheap–I mean really cheap.