Up and Down We Go – Where We End Up Nobody Knows

Equities were down today – not dramatically, but 1/3rd% or so. Every time the market moves even a little bit lower the talking heads start the talk about it is ‘time for a retracement’ of the rally. So much nonsense – who the heck knows when the drop will come?

It does seem like the markets are waiting on Chair Powell to speak on Friday at Jackson Hole. Seems to me there is not much new that he can say other than pound home ‘inflation remains too high toward our 2% goal’. I suspect they will skip the September meeting for an increase in Fed Funds, but it is more political – they really want to raise rates–as always lots of data to be seen between now and the October 31 meeting.

Today I sold a regional banker preferred – Merchants Bancorp 6% Fixed to Floating preferred (MBINO). I sold at $21.90 – I had bought this twice back in March/April and according to my brokerage statement my gain was in the 8-9% area which included a dividend or two. Missed buying the bottom for sure, but the gain is decent for less than a 1/2 year hold. I am not seeing anything worry some in the smaller bankers but they sure have lost their momentum from a month ago and don’t want to be overly involved at this moment – maybe in a couple months.

Someone in comments mentioned yesterday they were able to pick up a year CD on eTrade at 5.70%. I checked it, but missed it–must have been a small issue that was gobbled up quick–as you might guess. Is it a sign of new rates to come – we’ll see!

I will NOT be posting headlines for the next 3 days as I will be out of the office, but will resume them on Monday evening.