Investor mood is greatly affected by losses that are incurred day in and day out as income issues grind lower. After all these years of investing we have finally reached a good point in our ‘investing life’ – we accept that there are going to be periods where investing is frustrating and money is lost. We still dislike losing money with a passion, but such is life when investing in securities. We don’t wring our hands or lay awake at night.
We know that we have new income investors entering the market each day-we have some who have commented on the website the last few days-and the period of time we are in right now tends to scare these new folks off for a long time.
It is likely, although not guaranteed, that there is opportunity for income investors right now (or maybe next week) to buy quality issues at discounted prices. The CEF preferreds and the high quality REIT preferreds (for instance Public Storage preferreds) have not given us the opportunity to buy for current yields of 6% and more for years.
We have to be out of the office this morning so will miss a few hours of excitement and it is always good to be away from computer screens.