Wow yesterday was a pretty red day–I was out of the office all day long and was unable to watch the tumble, which of course would make no difference as I wouldn’t buy nor sell on a day like yesterday. Will these beatings in the tech sector continue? I have no earthly idea–nor does anyone else. Does it matter to an income investor? To some degree I don’t want to be buy into anything if markets are diving hard–simply because folks hit the exits without using their brain and the baby goes out with the bath water.
Since I was out of the office yesterday I will look around and see if there are any bargains in income issue land–something I already own that is down 2-3%–if a term preferred is a good buy at $25 it is likely a great buy at $24.xx. We will see–no hurry to buy.
The 10 year treasury is at 4.21% right now and we have 2nd quarter GDP being released in 15 minutes–we need to see a soft number. The Atlanta Fed GDPNow is forecasting 2.6% for Q2 while other forecasts are for 2.1%–I would love to see 1.8%–something (anything) under 2%. With a Fed rate cut forecast now for September this is a critical number.
Well let’s Go!!
I noticed a new Morgan Stanley preferred issue. Will they be calling one of the outstanding? F, maybe? Barely any savings, though…
Everyone now run over to the right side of the ship, and now back to the left. Scrambling rats…. lol
Interesting how quickly the panic button is going on. Price levels are retreating back to …… June levels. The horror so far!
Its only scary if you’re a FOMO retail trader who decided just now to buy into the market.
Tim.. .Can not resist the bargains,, 7% + and + plus 1-2 dollers below par. A rated.. still buying… Georges
What are you keen on?
Georges, would you mind sharing some of the A-rated issue(s) with the yield you are talking about?
Tim, in a panic some of these newer BB that recently came to market will drop. Don’t be surprised if RFPVF goes lower. Also the 2 newer TRIN BB
GDP came in 2.8% ?
With durable good orders at -6% as I understand it.
Someone correct me if I got that wrong.
And after 1.4% for Q1.
This number is a head scratcher. If it revised down in a month I suspect nobody will notice.
Be safe
Orders are not a part of GDP. If orders remain weak, that could result in lower production which would impact Q3 GDP.
Q2 GDP gets revised twice. If the revisions are bigger than economists expect, market will definitely notice.
The drop appears to be mainly due to a 127% drop in orders for non-defense aircraft and aircraft parts.
D, Just curious here. A 127% drop…as in zero new orders (-100%) and a return of 27% of previous orders?
That’s a lot of sigma.