Planning Ahead for The Coming Investment Week
By: Tim McPartland,
Normally on a Sunday night we ponder what, if anything, we need to do with our investment accounts for the coming week–this week it is Monday night as we had the market holiday today.
We had mentioned in our article on Tortoise Energy Infrastructure preferred yesterday that we would be moving a chunk of cash into TYG-B tomorrow–and we will be doing just that on Tuesday morning. We know of no better place to put idle cash at this moment (the time when we are feeling very negative on the general global economy). We feel so strongly on the safety of this issue we will overweight the issue even more than it already is (we noticed some new debt issues from TYG have been rated AAA).
In addition to the above we are pondering selling at least 1 perpetual preferred–Resource Capital Corp (ticker:RSO-B), from the 2014 Model Portfolio – Blended Income, as it is a very low quality issue and while it is our highest yielding preferred at this moment and we hate to lose the 9.24% current yield our first priority is capital preservation. Beyond the Tortoise move above we likely will do nothing in the 2015 Model Portfolio – Blended Income this week. The model is just a couple weeks old and we need to give it more time to ‘work’.
As you would expect we will be watching the energy markets. We have no change to our opinion here–in spite of last weeks bounce in crude prices. Inventories and global production indicate to us that prices are going to head back down. So while we watch this market closely we will not be acting on any urges to buy any shares yet.