The market prices of investments that have a known return do not tend to bounce around as much as the market prices of alternatives with lesser known returns. With a known return, the speculators - those fairly certain that they know something that is unknown to others - are removed from the market.
In the aftermath of the November 6 elections, the S&P 500 Index of common stock prices fell by 5.25% (November 15) but has gradually regained most of that loss over the subsequent weeks. By plotting the movement of preferred stock market prices over the same period, we have a rare opportunity to directly compare the volatility of preferred stocks to common stocks in response to a known event...
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Many Happy Returns.
In the aftermath of the November 6 elections, the S&P 500 Index of common stock prices fell by 5.25% (November 15) but has gradually regained most of that loss over the subsequent weeks. By plotting the movement of preferred stock market prices over the same period, we have a rare opportunity to directly compare the volatility of preferred stocks to common stocks in response to a known event...
Note To Readers: This article was chosen to appear on the popular investing website 'Seeking Alpha'.
By clicking here a new window/tab will open on your screen to this article as it appears at SeekingAlpha.com.
Receive my Seeking Alpha articles by email: When viewing one of my articles at Seeking Alpha, click on the "Follow" button under my picture. You will be notified by email when I post a new article to Seeking Alpha.
Please enjoy reading this article at Seeking Alpha.
Many Happy Returns.
