Wild Ride on Tap for Today
By: Tim McPartland,
So we are going to have a bit of a wild ride today thanks to the British vote yesterday. No need to panic as the U.S. market is shown down just 3% or so at the moment, which is a drop in the bucket compared to some of the European markets which are down 7-12%. The 10 year treasury is trading around 1.54% and we believe is heading lower yet in the next 6 months.
For today we will be watching for some bargains mainly in the REIT area as we do not think that most preferreds will fall more than 1-2% which is not enough to warrant bargain buying. When we say we are looking for bargains we are talking 10-20% lower prices and in the income investing area we don’t think that will be happening today.
In summary, while today will be interesting, we don’t believe that there will be many true bargains being presented and we think investors should sit back and enjoy the action.