Well we are just 30 minutes from the release of the biggest economic number of the week (at least in some minds) – the personal consumption expenditure (PCE) report. Will this number–if showing inflation at an elevated level toss cold water on the pretty hot equity indexes? The obvious answer is who knows–no one. The 10 year treasury is trading at a yield of 4.12% right now – this after we saw mixed economic numbers released yesterday. GDP is running a bit hot, but inflation indicators continue to indicate moderating numbers.
Each morning when I tune the news in on CNBC (to be turned off at 8 a.m. central) I see news of layoffs from tech company’s – today it is 700 to be laid off at Salesforce. Also I see Levi Strauss is cutting 15% of their HQ staff and Norfolk Southern is cutting 7% of non unionized folks. In spite of this we don’t have major indications in employment stats that are cause for alarm. Are folks able to find employment quickly after a lay off? I still maintain that the Fed is watching employment closely when it comes to interest rate decisions.
Today I am entering 2 good til cancelled nibble orders (nibble because I don’t have much cash). I will add to 2 of my insurance positions–assuming my GTC orders execute. Remember that I am targeting 7%—I will add more Sirius Point 8% resettable (SPNT-B) preferred and Brighthouse 6.60% preferred (BHFAP). These will meet my target without undo risk.
I see that Atlanticus Holdings (ATLC) has finally priced their new baby bond at 9.25%–slightly better than I would have guessed considering this is a company that makes marginal loans to consumers. No thanks to holding any of this issue.
ok–time to wait on the PCE news–see if it is a yawner or fire works.