There is a certain amount of evidence suggesting that concerns about the Federal Reserve backing out of its $85 billion per month Quantitative Easing (QE) bond-buying program have already been "priced in" by preferred stock investors.
Ignoring the possibility of QE "tapering," high quality preferred stock market prices have been relatively stable for almost two months now. In fact, their average market price has returned to pre-QE2 levels closing on Friday, September 27, 2013 at $24.34.
When combined with the fact that high quality preferred stock yields have returned to their long-term QE-free 7 percent average and prices have returned to their pre-QE2 levels, it could be argued that the effects of tapering have already been "priced in" by preferred stock investors. If that's the case, whatever selloff of high quality preferred stocks was going to happen has already happened...
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Ignoring the possibility of QE "tapering," high quality preferred stock market prices have been relatively stable for almost two months now. In fact, their average market price has returned to pre-QE2 levels closing on Friday, September 27, 2013 at $24.34.
When combined with the fact that high quality preferred stock yields have returned to their long-term QE-free 7 percent average and prices have returned to their pre-QE2 levels, it could be argued that the effects of tapering have already been "priced in" by preferred stock investors. If that's the case, whatever selloff of high quality preferred stocks was going to happen has already happened...
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.
