Monday, July 14, 2008

Preferred Stocks Get Crushed

Preferred stock owners, especially financial preferreds, have seen share values evaporate over the last couple of weeks. Below we highlight the S&P Preferred Stock index going back to late 2003, along with a chart of its 50-day moving average spread. These shares are thought to be less volatile and less risky than common stocks, but with the index currently trading nearly 20% below its 50-day moving average, they have been anything but that.

Preferreds1

Preferreds

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.