It is interesting to watch markets–equities in particular. Since I seldom am a buyer of common stocks anymore it is not necessarily consequential where things move hour to hour, but as someone who has watched and studied these things for 53 years I still find it fascinating.
Yesterday started pretty soft then reversed and sprinted higher the rest of the day–today the S&P500 was off almost 1% and now has reversed and it down just .3%. The mood of traders is what is interesting–or is it ‘machines? Drive things in one direction and then drive them in the other direction. All this movement and yet the index is just 1.7% off of an all time high–quite interesting.
Surveying my holdings today it is becoming obvious that when I ‘lightened up’ on perpetuals last month it was a mistake–a mistake in that I didn’t just dump my perpetuals instead of ‘lightening up’. While the portfolio is still just a few 1/10%’s off all time highs it is always discouraging to see dividends and interest payments roll in while share prices move lower offsetting the nice payments. Just noise–all just noise. Watching the low coupon (or mid coupon) issues there are bargains being made–but that assumes interest rates stabilize or come down and I am very leery of that happening.
I am watching the term preferreds and baby bonds with maturities in the next few years–the only place I would be likely to do some buying–but not today.
Well as I type this the S&P500 has taken a fairly large dump–guess no one can decide what the future holds (really?).
Glop C up $1.13 per share to $26.50. I can’t find any news. Above average volume, but only about 4700 shares traded today. A call announcement would have sent it the other way.
Saw that too. Figure someone pushed the wrong button.
I don’t see that high on any source. Wrong symbol?
Tim, while we don’t discuss much common shares, i agree with your trading comment. I have alot of CME, but have more buys in for any small drops. i also feel it ticks alot of boxes for the pending future – all driving trades: politics, trade barriers, war etc. Imagine the trade profits if there is a crash! So it’s becoming a hedge type holding for me.
BHF preferreds seem to be particularly hard hit of late. eg. BHFAP and BHFAO low-IG rated preferreds which were in $25s Nov 8th can be bought in mid-$23s today. Also Tim had mentioned owning the low-coupon BHFAN and it being down as well so perhaps something BHF specific?
Anyone know why this big a drop for BHF ?
BWBPP off 1%. Not sure why. BWB down just a bit. Picked up a few more shares.
Common share prices have gotten unrealistic. People have been buying for the growth not the dividend. ( Note I did not say investors).
Consumer related common stocks are at risk of dropping or have already dropped. All it takes is one bad earnings report and they can fall like a rock and you don’t even have the dividend as compensation.
Look at TGT today. Consumers are holding back on big ticket purchases or maybe maxed out on credit. Look at share prices of F and GM. I am watching WHR because of the dividend but all it takes is a bad report to spark a sell off
But WMT made (another) all-time high on its earnings report.
Does anyone have an opinion on HFRO-A? It looks like an A rated issue that requires at least 200% asset coverage. HFRO CEF trades at a 58% discount to NAV, which is dramatic.
I have some I’m ignoring in a taxable account. Not much opinion just spreading it around among such issues. Looks reasonably safe for 7+% though the common has been falling. Qualified Dividend, actually Variable probably qualified.
Mseni19–off the top of my head I remember they had a very concentrated portfolio which at one time including a bunch of timberlands–I think that has all changed now (I hope), but it left investors avoiding the fund. Just glanced at it and Nexpoint now manages it and a good share of their investments are in related funds (Nexpoint Hoe, Nexpoint Storage etc)—seems kind of incestouos. Use caution and do a deep dive before buying this one.
Thank you Tim —
Your posts taught me about preferreds issued for CEF funds, asset coverage ratio, and redemption requirements. RE: Gabelli, Rivernorth
I was trying to decipher if this name was an opportunity.