Are Preferreds Staging A Comeback?

Along with both high yield and investment grade bonds, preferred stocks have also staged a decent rally off of their recent lows.  After making a nice double bottom on November 20th, the iShares S&P US Preferred Stock Index ETF (PFF) is now trading above its 50-day moving average.  Up until its recent break above, the 50-day acted as heavy resistance for PFF in the prior six months.  A turnaround in both preferreds and corporates are key to any recovery in this market, and the recent action in both is definitely a positive.

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Comments

[Chris]

That is a bullish move in the PFF. Worth watching. Thanks!