Agree. It may be a divvy run, but I'm holding. Potential for special div to be announced first week in Dec due to UTI (14c as of 9/30).
Federal Reserve officials on Wednesday continued to flag December as a possible time to raise interest rates after seven years near zero, with two expressing confidence they will be able to pull it off smoothly despite fears of an abrupt market reaction.
Investors reacted by increasing the odds of a rate hike next month to 72 percent, from 64 percent on Tuesday, according to futures markets.
Cleveland Fed President Loretta Mester repeated her position that the U.S. economy is now strong enough to absorb a modest policy tightening. Atlanta Fed President Dennis Lockhart, sitting alongside her on a panel in New York, said global financial markets have settled since the August turmoil that caused the U.S. central bank to delay raising rates.
"I am now reasonably satisfied the situation has settled down ... So I am comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions," Lockhart told a conference of bankers, traders and regulators.
Key phrase: no marked deterioration in economic conditions. Looks like DJI is making another run to 18000. I believe a 25bp hike is expected, but it's not clear to me if the market is going to react or not. I believe larger or faster hikes would cause the market to slide.
Should provide price support....
NEW YORK, Oct 05, 2015 (GLOBE NEWSWIRE via COMTEX) -- Garrison Capital Inc. GARS, (the "Company"), a business development company, today announced that its board of directors has authorized the repurchase of up to $10.0 million of its common stock at prices below the Company's net asset value per share as reported in its most recent financial statements.
I wonder to what extent companies take federal employment numbers to heart. It would seem risky given that the August numbers just got revised down, when it was only about 2 1/2 weeks ago there were reports that FedEx was to add 55,000 seasonal workers this year (up 5,000 y/y reportedly). I'd be surprised if companies didn't have cutoff times for hiring, in order to ramp up.
I could see if investors think subsequent dividends are going to go down, the pps may fall to keep the maintain the nominal yield.
"We think we will increase it, but, gosh, golly, maybe we won't." The financial media is apparently ruling out October (but what if the data indicates a hike at that time?), November there is no meeting, which brings us to December. Doesn't change much here - cash is ready.
Financial drama = market volatility. Why? Because the financial media tends to assume the lack of a presser discounts the possibility of a rate hike.
I got a feeling people will justify the market's reaction no matter what happens. Think we'll see volatility for at least a few months.
Amended version: Rates could be increased an anticipation of an improved economy, according to someone (possibly a Fed member) interviewed (on NPR?) last week. (Hey, I can remember only so much, esp. if it was a week ago!). I was surprised because I was understanding Yellen's Fed as wanting to see various thresholds met rather than sort of extrapolate where the economy is headed.
I believe PSEC would like us to think the spinoffs would provide a good value, and I think they will have a hard time of it if this ER is, or is perceived as, negative.