Today in the market, Thursday, October 30, 2008: Stocks climbed on Thursday as investors snapped up shares trading near their lowest levels in five years on optimism that aggressive rate cuts by global central banks, including the Federal Reserve, will help cushion a worldwide economic downturn.
Investors also found support in signs that efforts to loosen up clogged credit markets were taking hold as the rate that banks charge to lend dollars to each other fell, freeing up cash needed to avert a sharp slowdown.
With just a day left in October, stocks are on course to post their biggest one-month loss since the 1987 crash. (headline & commentary courtesy of Reuters)
ETF/CEF Low Volatility:
- SHY 1-3 Year Treasury Bond Fund (Leh) iShares
ETF/CEF Discussion: Although the market was up about 2.5% today, RSI picked only one fund and it is a T-bond fund. SHY pays a 4% yield and it has been on a steady upward path. Full disclosure, I own SHY in my IRA portfolio and I love it. In essence I have my money in several bond funds as a holding place, keeping my powder dry. I did nibble on a few high yielding issues today:
- BEP – S&P 500 Covered Call Fund Inc. 18.90% yield
- NLY – Annaly Capital Management, Inc. 16.70% yield
- SBR – Sabine Royalty Trust 15.70% yield
These three were just compelling for me to pass up. All but BEP have been picked by RSI in recent days. I have owned BEP and its sister fund, BEO in the past and it has been an excellent performer for me. Catch you tomorrow.
