September 25, 2017
Gladstone Capital a business development company is selling a new issue TERM preferred. We LIKE term issues as they have a mandatory redemption, in this case 2024. In other words, they are NOT a perpetual, which is a good thing. And we like buying NEW issues.
(We are also holding another Gladstone issue which is GAINM.) GO TO THE LINK BELOW FOR FULL DETAILS.
Here is some commentary from one of our favorite financial sites….link to full article below.
The Fed does NOT honestly believe in the strength of the recovery, that inflationary pressures are present OR that employment is as strong as stated.
It’s actually quite the opposite.
IF they believed in the strength of the economic data, as they suggest following their regular meetings, they would have been increasing rates and reducing the balance sheet in 2010 as growth exploded from the recessionary lows. But they didn’t.
Why do I say that? Because there have been absolutely ZERO times in history that the Federal Reserve has begun an interest-rate hiking campaign that has not eventually led to a negative outcome.
While the Federal Reserve clearly should not raise rates further in the current environment, it is clear they will remain on their current path. This is because, I believe, the Fed understands that economic cycles do not last forever, and we are closer to the next recession than not. While raising rates will accelerate a potential recession and a significant market correction, from the Fed’s perspective it might be the ‘lesser of two evils.’ Being caught near the ‘zero bound’ at the onset of a recession leaves few options for the Federal Reserve to stabilize an economic decline.”