Preferred stock investors have endured a difficult stretch over the last several months. Since peaking in early May, preferreds as an asset class have declined sharply. This, of course, stands in stark contrast to the stock market, which managed to shake off some early summer turbulence to advance to fresh new highs. But despite this divergence in performance, stock investors may be well served to pay close attention to the recent direction of preferreds, for they may be foreshadowing that a stock market correction may be approaching in the near future.
Please click on the link to read more of my article on Seeking Alpha.
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