What a crazy day in equity markets today. Not much to say about it since we were bound to get a bounce at some point in time, although coming in the middle of the day and bouncing back into green from way, way down was a bit of a surprise.
Regardless of the bounce today I fully expect that we will see some big down days yet this week–and again maybe a big up day. My suspecion is we will be heading further south in the days and weeks ahead.
Interest rates moved a little lower during the day today–down to the 1.71% area before bouncing back to close around 1.73% – off 1 basis point.
Some folks are looking at doing a little buying in some closed end funds–mentioned in some of the comment sections. In fact I bought a tiny starter in the Royce Value Trust (RVT) and by tiny I mean just that–looking to buy more probably but ‘scaling in’ is no doubt the best method to buy right now. RVT pays a nice dividend of around 7% and has a stellar track record over the last 36 years. I will be watching some others as well and looking for bargains.
I have made no sales for weeks (or maybe months-it has been a while). Our portfolios have fallen from all time highs but remain less than 1% off those highs–it will be a tough year to make much (if any) money now on a total return basis–collect dividends then take a little capital hit (if rates move higher) – rinse and repeat. Of course those looking for ‘immediate income’ are doing just fine.