wrote in message
...
On Mon, 26 Apr 2010 21:41:08 -0400, Wayne.B
wrote:

On Mon, 26 Apr 2010 18:20:59 -0700, "Bill McKee"
wrote:

Preferreds and long bonds will both take a big hit when (not if)
interest rates start to rise. Convertible preferreds offer more
protection on the downside if the underlying common is solid.

I think they already been hit. Got out of most my preferreds a few
months
ago.

They will get worse, quite possibly a lot worse. Back in the early
80s you could buy rock solid preferreds for less than 50% of par value
and yielding close to 15% annually. They all payed off at par
eventually as interest rates came down.


I was really just looking at this as a short term trade and my
thinking is ther fed is not going to let interest rates go up too much
in the short term. This recovery is so fragile that they will do
anything to keep the party going.
This is my speculative money anyway. If I guess wrong I won't need to
be eating cat food.



Inflation is not the concern right now. It's quite under control, and
allowing it to get out of hand would damage the recovery.

--
Nom=de=Plume