Sitting at my desk I have the SPY ETF charts running on one of my large screen monitors–I run 3 large screens, and the ups and downs could make a person crazy. One minute SPY is up 1% and then 15 minutes later it is down 1%–it only takes a tiny bit of ‘fake news’ to send shares up or down. We were all primed to deal with rising interest rates and then we get to deal with the Ukraine invasion–seems like it is always something.
I have been nibbling almost every day—tiny quantities–I mean really tiny–25 or 50 shares of various issues each day. With all of the global disruptions it is difficult to feel highly confident in buying in quantity. Thus far I have just been adding to positions that I already held–i.e. Arbor Realty, Ready Capital, Prospect Capital preferreds and a few others. I intend to jump into some investment grade issues–those that don’t meet my 7% current yield hurdle, but offer a nice discount to $25 liquidation, but one can’t help but think there will be lots of time to make this move and at even more favorable prices. I have lots and lots of dry powder ready to go when the time is right (who really knows when this will be).
Of course the Fed is now backed into a corner somewhat–ranging inflation and a country invaded by Russia and the Fed needs to raise interest rates in 2 weeks. I think it is the right thing to do–at least the 1st 1/4% hike and then wait. Obviously these are the types of decisions that will continue to disturb markets for weeks to come and which will rock prices likely to drive prices down from even the current levels.
We watch and wait.