WASHINGTON, May 18, 2017 – We have very little to say today as the major stock market averages try to stay in positive territory going into the final half-hour of trading.
The political asininity in Washington has hit a fever pitch for the umpty-umpth time since at least November 9, 2016 as Democrats and their fabulator buddies in the dying media keep peddling false news that, notably, is never directly sourced meaning that its veracity is always in doubt.
What this means for the average investor is that even doing all the required investment homework in the world doesn’t amount to much if the political and media Irrationals suddenly show up to derail all one’s research with one well-placed, albeit false, hit job to keep the “Resistance” going. Funny, we always thought that preventing a president from doing anything approached the level of sedition.
But no matter. We did take a couple of chances near Wednesday’s disastrous close, so we’ll let you in on what we did right here.
We didn’t do much, frankly, but we did use yesterday’s disaster to scoop up a partial position in a couple of stocks we’d wanted to buy previously before they got away from us. The lucky companies were Bank of America (symbol: BAC), the little-known Federal Agricultural Mortgage Corp., aka “Farmer Mac” (AGM) and U.S. oil major ConocoPhillips (COP).
We also added to our rather conservative position in the 7.625% “baby bond” notes of RAIT Financial Trust (RFT), mainly for the yield. This is mainly an income position, yielding 8.23 percent currently. Why would we do this in an allegedly rising interest rate environment? Simple. The risk seems limited as this issue is callable on July 1, 2017, and has a mandatory redemption (maturity date) of 04/15/2024, which offers some protection, at least, against potentially much-higher interest rates.
All these issues took such a hit Wednesday that we couldn’t resist getting into them, as we’d long imagined all of them were out of reach only a few days ago, and we hate to chase stocks when things are bullish. All of them are up as we near today’s closing bell. But, based on recent market action, we’re not quite ready to label this an ongoing trend.
We’ll see you tomorrow if action warrants.Click here for reuse options!
Copyright 2017 Communities Digital News
• The views expressed in this article are those of the author and do not necessarily represent the views of the editors or management of Communities Digital News.
This article is the copyrighted property of the writer and Communities Digital News, LLC. Written permission must be obtained before reprint in online or print media. REPRINTING CONTENT WITHOUT PERMISSION AND/OR PAYMENT IS THEFT AND PUNISHABLE BY LAW.
Correspondingly, Communities Digital News, LLC uses its best efforts to operate in accordance with the Fair Use Doctrine under US Copyright Law and always tries to provide proper attribution. If you have reason to believe that any written material or image has been innocently infringed, please bring it to the immediate attention of CDN via the e-mail address or phone number listed on the Contact page so that it can be resolved expeditiously.