November 6, 2016
Well folks, it’s just about over. Thank goodness. We have never seen such a spectacle as this election has turned out. We can only imagine that the Founding Fathers are turning over in their graves.
But it’s almost over and hopefully the markets will get back to normal after some expected SHORT-TERM turmoil starting Wednesday.
We have been selling interest rate sensitive positions, and raising cash. We do NOT necessarily feel strongly that rates are going higher……we have been thru this rodeo several times over the years. But there seems to be growing evidence that the Fed is going to move, albeit slowly.
The floating rate segment may be promising and so far one position has been purchased in anticipation of higher rates.
We are waiting for the election results and will make sell or purchase decisions at that time. The majority of the Core Portfolio income has always been the numerous Corporate Bond positions. Potential higher interest rate will have minimal affect on the corporates, and if you hold to maturity-assuming no bankruptcies, there is no incurred loss.
But Hill and Obammer tell us everything is great:
That said, a look just beneath the surface reveals a slightly different take on the U.S. auto industry. As the Financial Times recently pointed out, auto repossessions in the US are soaring and, with the exception of the “great recession” in 2008 and 2009, stand at the highest levels recorded in 20 years.
A wire fence topped with barbed wire surrounds a packed plot of land, housing a white Jeep, an orange Audi and a host of other repossessed cars. Sergio Tavano, owner of T-Birds Automotive in Red Hook, Brooklyn, sits in his car outside the lot with two of his employees. “The number of repossessions we are doing has definitely risen,” he says. “It’s the highest I have ever seen it.”
Repossessions in the US hit 1.6m in 2015, the third highest level on record for data going back 20 years, falling short of the 1.8m and 1.9m peaks seen in 2008 and 2009, respectively.