Posted on 01 March, 2012
The Catch-22 these days is that traditionally lower-risk vehicles may present higher risk in the long run.
Posted on 01 January, 2011
For months, we at Frontwater Capital, have been saying: stay away from government and investment grade bonds. When cash rich companies like, IBM, Microsoft, Pepsi, Walmart, McDonalds, etc. can issue debt at yields near or below 1% for 3 years, you have to question the intelligence of the bond market. Finally, this December, it seems as if we got the correction that we have been looking for.
Posted on 15 November, 2010
Investors seeking a steady yield, yet fear the bursting of the bond bubble, may want to plug into US utility shares and/or ETFs.
Posted on 15 November, 2010
“We’ve got to resolve this issue of ballooning US debt levels before it gets forced upon us” – Alan Greenspan
Posted on 08 November, 2010
Long-only portfolio managers traditionally manage risk through asset allocation strategies that concentrate on finding a balance between equity, fixed income, and cash. But what happens when demand for seemingly safe fixed income investments, such as government and investment grade bonds, drives prices up to ‘bubble’ territory. Shifting assets out of equities and into an inflated asset class such as bonds does little to minimize risk.