Review of Today, Tonight in Asia and Tomorrow
By: Tim McPartland,
What a wild ride today–more remarkable than the 1100 drop at the open was the 1000 point snapback–of course engineered by traders.
Today trying to search for bargains during the first few hours of the day was futile as most of the quotes we were able to get were either non existant or incorrect. But for the most part it didn’t matter as the shares we were most interested in were off just 1-3% and while that was a bargain of sorts we were interested in ‘fire sale’ prices (off 10-15%) and while we would guess there were a few of those available, with the bad quotes, who would have known.
We did make a small purchase of some shares of Sienna Senior Living no other shares were snagged.
Tonight we are getting a modest bounce in Asian shares as well as the Dow futures being up 2%–maybe we get a relief rally of sorts tomorrow–BUT we would caution that it is likely to be short lived and the best we are hoping for over the course of the next couple weeks is a stable market–we think the current stock market level is more correct than the higher levels we were experiencing. Obviously this whole situation lends more uncertainty to the future of interest rates, but we will worry about that another time–for now we just hope we can navigate current conditions.
Today for the 1st time our 2014/2015 Short/Medium Duration Income Portfolio took a more major hit of sorts. We opened the day up 6.18% YTD and ended at up 5.29% YTD as a number of issues were knocked down 1-2%. This is the first time in 10 months that this portfolio moved more than .4%, but if markets stabilize we would hope to regain some of todays loss in the weeks ahead.
The 2015 Blended Income Portfolio ended today at up .9% YTD–way ahead of our benchmarks, but disappointing. Guess we are thankful to still be up on the year.
For now we are probably just observing the markets, but as always if bargains appear we have dry powder to buy.