We thought the rally in stocks yesterday was kind of a ‘fake out’ and it is turning out to be just that. We had some gains yesterday, but 50% of those modest gains have evaporated thus far today.
As we mentioned we have been waiting to buy some bargains with nothing bought last week and none this week. On Monday a bunch of seemingly bargains were created – then they bounced yesterday – but they have fallen again today. There just isn’t too much of a rush to get into the marketplace.
We have plenty of dry powder laying in money markets–but earning 2.26% in the Gabelli US Treasury AAA-(GABXX) or the Fido Ready Reserves we can certainly drag our feet a bit longer.
Today we have shippers off–but by and large they are retaining some of yesterdays gains (in particular Seaspan). It is funny today to see some of the insurance companies off quite a bit–Enstar and PartnerRE. The 7% Landmark Infrastructure Partners fixed-to-floating preferred units are off 79 cents on 8 times normal volume and trading at $19.01 for a current yield of 9.21%. All of the CHS preferreds (5 issues) are off today giving back some of yesterdays gains and all are trading with current yields of 7.17% to 7.80%.
So with the DJIA off 572 as I write this I sit back and watch–no real hurry is necessary.