After some difficult days in equities it looks like markets are ‘digesting’ recent moves–equity indexes are moving in a relatively narrow range–up and down now.
Interest rates are kind of doing the same with not much movement and just hanging in the 4.20% to 4.25% area, although this is a fair amount higher than the low of 4.11% 24 hours ago.
We had the ADP jobs report released this morning at 77,000 new jobs created in February–much weaker than forecast of 140,000. As folks know I concluded long ago that employment was one of the most important indicators of economic strength/weakness. No doubt this is weak and when we see the ‘official’ government numbers on Friday we will have a darned good hint at where this economy is going.
As folks have been noting KKR is selling a mandatory convertible $50 preferred which folks can read about here. I’m not personally fond of convertible issues–for no particular reason-guess I just like plain vanilla preferreds.
Also Highland Opportunities and Income Fund (HFRO) has just completed an exchange offer for a new series of preferred stock. It is a 5.375% coupon–same as their HRFO-A issue which is trading at $16.76 now for a current yield of 8.02%. Folks really hate this closed end fund. The ‘B’ issue will be listed on the NYSE soon.
Well I’ll do nothing investment wise today–boring, but preferable to doing something stupid.
The market is manic, first it’s down one day then up the next. No trying to be political just want to be neutral, but we have never had a president who says one thing on his own personal media platform then changes direction a couple days later.
I shouldn’t complain as I have been waiting 6 to 8 months with low ball orders out there hoping for them to hit.
The first indication that you were about to spew an ignorantly political comment was your illiterate typing of “No trying to be political”.
You and SteveA should again review the post titled “No More Political Grenades” down on the right side column of any page of this site.
No justification of your comment will do, but surely you and others will give it a go. Some feel bigger when they have the last word.
We all know why the market was down and then up – tariff related issues. Has nothing to do with your cheap-shot commentary.
I don’t think any other president owned a media platform, Charles, so that’s terribly unfair!!! (I’m not sure who it’s unfair TO).
Whatever happens with the current efforts to expand the powers of the presidency, the new standards established, if any, will last a very long time as we are likely to have quite a few SCOTUS rulings.
Now, if you can predict what SCOTUS will do, you can make quite a bit of money.
I’m just worried in the interim a big rock will hit the Earth directly into the stack of a US nuclear plant, or in the middle of a big city….or some terrorist will get and use a nuke.
Perhaps my neighbor with 24 strategically placed guns in his house or the neighbor with Rolladen shutters ( both in a guard- gated neighborhood) on his upstairs windows because they are worried about the breakdown of social order will be correct.
Franklin, I will leave the political disclaimer off next time and just say all the talk about instituting tariffs then delaying them for 30 days then going ahead and putting them in place then added talk of modifying them to exclude car makers has caused the market to go up and down.
For what it’s worth I have felt for a long time that businesses in America moving jobs overseas has been bad for the average Joe. But in return we have perpetuated it happening because we as a nation want things cheap. I can’t sell lead bullets to the Sacramento sheriff employees because they can buy imported bullets cheaper. So I support trying to wean consumers off cheap imports by raising the costs with tariffs. What I don’t like is how it’s done. I try to talk to my neighbors to work out my problems with them. I don’t bully people and I don’t like bully’s because I know what it was like to be bullied as a kid.
Charles-
” But in return we have perpetuated it happening because we as a nation want things cheap. I can’t sell lead bullets to the Sacramento sheriff employees because they can buy imported bullets cheaper. ”
It isn’t that we just WANT things cheap. U.S. Labor costs including “all-in” costs for labor like health insurance, employer’s 6.2% FICA portion, etc. simply can’t complete with low labor cost locales like China, India, Vietnam, Mexico, etc. When you own a business in America and you want to hire someone at $15/hour, your all-in cost is $22+.
For example, If Apple is to move production of its iPhone here to the US, it would have to do it almost completely with robots. Otherwise, who is going to spend $5K for an iPhone?
The average manufacturing wage in China for production workers is less than $15K/year. I do admire the current Administration’s goals and I hope they will help get more onshoring done without American citizens having to eventually pay much higher prices, but they seem like a fantasy based on the economics.
I’ve been buying SREA and CMSC in two accounts, 6.3% BBB- on both, trying to replace CDs and money market as rates are falling.
I just bought some CMSC today as well Tim.
I like that it is NOT callable.
Dan,
CMSC and SREA prospectuses say both are callable.
CMSC: Callable since 10/15/23.
SREA: Callable since 10/1/24.
Thanks made a mistake reading the list on the utilities tab I guess.