Are Preferreds Staging a Comeback?

Dec.26.08 | About: iShares U.S. (PFF)

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 (NYSEARCA: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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