Monday, July 14, 2014

Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases

Contrary to what we were all told earlier this year, preferred stock market prices have been slowly rising, not falling, since January. As the Fed has withdrawn from its QE program, the market price for the highest quality preferred stocks has gone up about $2 per share this year. A variety of theories have been proposed to explain this reality, but my sense has been, and continues to be, that preferred stock investors have already "priced in" the complete withdrawal of the Fed from their QE bond-buying program.

During a period of increasing prices, preferred stock buyers can purchase newly issued preferred stock shares for sub-$25 prices by...

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