Summary
Black financial experts discuss the best fixed-income investment moves - Panel Discussion
Six investment advisors discuss strategies for investing in fixed-income security such as bonds, in the wake of the 1994 market slump in which long term US bond returns fell lower than ever before. A brief profile is given of each advisor and a glossary of fixed-income terms is provided.See the full content of this document
Extract
Profit from debt.
DESPITE THE WOEFUL PERFORMANCE of '94's fixed-income market, bonds and other fixed-income securities should still be a part of any savvy investor's portfolio. But as last year's performance makes clear, a disciplined and pragmatic strategy is essential. Such a strategy should set up a steady income stream to increase wealth and enhance savings for future investments.
Last year was a real test of this approach. Long-term U.S. government bond returns fell to their lowest point in history, and analysts had to look back 30 more years to find worse returns for intermediate U.S. government bonds. Bonds of all categories--global, high quality, junk and municipals--recorded losses of between 2% and 4%. Maintaining a diversified portfolio can, however, minimize losses. Certainly, there will always be periods of downturn since business runs in cycles, but you can be sure that things will lift again. The challenge is to set yourself up to take a first-strike advantage of opportunities when they arise. This is true whether you're building a balanced portfolio or making a market play to create incom...See the full content of this document
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