Wednesday has a chance to be exciting–or it could be as boring as watching paint dry. Regardless of what the FED does with the Fed Funds rate (no cut, 1/4% cut or even a 1/2% cut) we won’t react to it. Our investment methods do not really allow us to react quickly to interest rate changes and our personal experience is that quick reactions are most bound to be a mistake.
With a stack of cash if we did see movements in income issues over the next couple of days we will look for bargains–but we are in no rush to make rash buys.
In the last week we added more Kayne Anderson 3.50% monthly pay term preferred (KYN-F) when opportunity presented itself down around $25.06. The issue has a mandatory redemption on 4/15/2020. I now hold around 1500 shares–in lieu of cash, but there are limits and I will buy no more.
The Fido Government Cash Reserves (FDRXX) is paying 1.91% right now and the Gabelli US Treasury Money Market (GABXX) is right at 2% so the large stashes of cash continue to work for us–albeit in a modest way.