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.