I think Mike Larson did a great job outlining the dangers of longer-term U.S. Treasury bonds in his past two Money & Markets columns. And like Mike, I continue to believe there is more pain ahead for that category of bonds.
Sure, we will probably see a time in the future when yields are juicy enough to make these bonds a good call. In fact, as a reader recently said on my blog,
“[When long-term Treasuries] go up into the mid- to high-single figures? Start buying. And if they go nuts like they did in the Carter years? Sell everything else you have and buy them!”
You’ll get no argument from me there. Along with holding solid dividend stocks for the long term, I think buying Treasuries during periods of high interest rates is one of the smartest moves an investor can make.
But we’re not there yet. And that’s leaving a lot of yield-hungry bond investors wondering what to do right now.
In a previous column, I told you how laddering can help you build a safer portfolio. And I’ve also been singing the praises of inflation-protected bonds such as TIPs.
But today, I want to mention that I am also starting to see some interesting buys in the corporate bond markets …
Why Some Investment-Grade Bonds Are Looking Attractive
….read more HERE
Nilus Mattive, a financial analyst at Weiss Research, is the editor of Dividend Superstars, a monthly publication and is also the editor of the company’s daily e-letter, Money and Markets. Formerly a senior editor of Standard & Poor’s The Outlook, the oldest continuously published investment newsletter in the country, he has written for a number of investment websites, including BusinessWeek and Individual Investor. Mr. Mattive is the author of The Standard & Poor’s Guide for the New Investor (McGraw-Hill, 2004) and has appeared on the popular investment radio show, Traders Nation, to discuss his views on personal finance.
Mr. Mattive graduated cum laude from the University of Scranton.