Dominion Resources now has contracts for 80 to 85 percent of the natural gas and oil operations it put on the market earlier this year.
“Do as we say, not as we do” seems to be the way of the leading companies in the US stock market.
The 10-year Treasury note yield is again more than 5 percent. And while the benchmark is off its high for the day—it reached 5.24 percent at one point—the fallout has at last reached the rest of the income investment universe.
From its February 2001 peak to a nadir two years later, El Paso Corp lost 95 percent of its market value.
Dominion Resources has sold a portion of its offshore oil and gas operations to Italy’s ENI for $4.8 billion.
Profits are always a good thing. But they also raise the dilemma of whether a winner has more in the tank or if it’s time to take profits.
Interest rate swings affect some income investments immensely and others less so. There’s no question, however, that what happens to the benchmark 10-year Treasury note yield will have some impact on virtually everything that pays a dividend.
On the one hand, strong companies are putting up solid results and show every sign of continuing to do so. On the other, interest rates appear to be doing their annual thing, with the benchmark 10-year Treasury note yield pushing close to 4.9 percent in Friday’s trading.
Global markets are more connected than they’ve been at any point in human history. And while that doesn’t please everyone, it’s a trend that’s going to continue for a long time to come.
No one foretells the future. Even the most successful stock trader will tell you the key isn’t trying to be right every time. It’s making the most of when you are, and minimizing the damage when you’re not.
