Professor Elam

A sign of a top in valuations is investor frustration with low yields. Indeed, bonds are less than 4%, Tsys anyway, and the banks, well you will spend more on gas than you will make on the depost.

Here are some preferreds from this weekend's Barrons article

Bankof America 8.8% see my earlier post on B of A and Merrill's bull, by the way there is a full page ad on page 8 of the current Barrons with the Merrill Bull prominently displayed, The pitch is for private wealth management, but I doubt one gets John Thain as an adviser….

CITI I 9.5%

Barclays 8.6%

Wells Fargo 8.2%

AIG 13.1% which is rated by the way BBB

Does anyone see anything wrong here? I don't recall what happened to Barclays but teh others in the list have  their share of problems, like single digit valuyations for some of their common shares. Indeed in the same issue Alan Abelson notes an analyst suggesting Bank of America is at least a half year early on re paying the TARP money, why not wait to see how those loans pan out?
EEP Enbridge Energy is suggested at 49 with a 8% yield, good but at 25 in March the yield was 16% and now EEP has doubled.

Chasing yield is never a good idea. Utility stocks moved up today and this aricle was cited as a reason. Nothing wrong with utilities, I doubt the lights will go out, but seems to me that everyone was worried sick about many of these same companies just months ago.