Where should you be investing now? Bonds? With interest rates beginning to spike, bonds prices are getting hammered. Stocks?The stock market, on the other hand, has seemed to go too far, too fast this year, leaving many to fear a major correction just ahead That's bad news for buy-and-hold investors. Cash? Let's not forget that many risk-free assets literally cost you money to hold them on an inflation-adjusted basis. What's an investor to do? This week's E-Letter has one answer.
It's no secret that I am sold on Wellesley Investment Advisors' convertible bond managed account program. Yet, many of my readers have held off on this investment, possibly because of some analysts are saying that it's time to ditch bonds. It's clear that investors do not realize that convertible bonds are a completely different animal than interest-sensitive Treasury and corporate issues.
This knowledge gap has caused many to reject convertibles when they should be embracing them. Greg Miller, CPA, is one of the foremost experts on convertible bonds in the country. In our webinars, he notes that anyone who listens to his presentation will know more about convertible bonds than 99% of the US population and even many investment professionals. Today, I'm going to offer you the opportunity to learn more about the hybrid nature of convertible bonds and why, when properly managed, they have the potential to make money in whatever market environment we may face in the future.