CA - Why I Don't Buy Bonds And Buy These 2 High Yielders Instead
2024-02-08 07:00:00 ET
Summary
- Investing in fixed-income investments results in lower returns compared to the stock market.
- Bonds are not risk-free investments and can experience significant losses.
- These two stock picks offer high yields and are currently trading at reasonable valuations.
This article was coproduced with Chuck Walston.
Let me begin by stating that I have no problem with investors that place their “dry powder” in bonds. That’s not what this article is about.
Rather, I will work to prove that investing in bonds is the antithesis of what the average investor should do. In this piece, I provide reams of data that shows that investing in bonds versus the broader market results in markedly lower returns.
Furthermore, I contend that the recent widespread move to bonds by the investment community is a form of market timing, and market timing is anathema to me....
Why I Don't Buy Bonds, And Buy These 2 High Yielders Instead