Despite the high risk in Junk Bonds investment, investors who invested in Junk Bonds sinces 2007 have seen high yield returns. According to Bloomberg analysis, Junk Bonds have returned 34 percent, including price gains and interest, since October 2007.
Junk Bonds have performed better than S&P 500 index
Bonds rated below investment grade have beaten the Standard & Poor’s 500-stock index by 53 percentage points since October 2007, returning 34 percent through Nov. 25, while stocks fell 19 percent.
Investors who invested in Junk Bonds of companies instead of buying shares of the companies have seen better return
The contrast is even more striking in the case of several well-known companies. Ford Motor’s 7.125 percent notes due in 2025 have risen 129 percent since Oct. 9, 2007, well ahead of the 17 percent gain by shares of the second-biggest U.S. automaker
Why Junk Bonds are Returning higher yields
Junk bonds have remained buoyant because “the bond market doesn’t believe we will have a meaningful increase in default rates,” Says Junk Bond Analyst.
have returned 34 percent, including price gains and interest, since October 2007.
written by Constantine Njeru
\\ tags: Bloomberg, Bond Market, Bonds Investment, Default Rates, High Risk, High Yields, Junk Bond, Junk Bonds, Stock Index, Stocks
Goldman Sachs analysts Allison Nathan and Jeffrey Currie forecast in a December. 13 2010 report that gold will rise to $1,690 in 12 months.
From Businessweek / Bloomberg Gold article.
written by Constantine Njeru
\\ tags: 12 Months, Allison, Bloomberg, Businessweek, Gold, Goldman Sachs, Goldman Sachs Analysts
Initial public offerings that are successful initially are often the worst investments long term. From 2010 November Issue of Bloomberg/Businessweek.
The article had some good tips on what you need to know about IPO investing.
IPOs that have strong investor interest tend to perform very well during the early days after listing.
It’s easy to get IPOs that no one else wants to buy, and it’s very difficult to get IPOs that there is strong demand for. So if your application is easily successful be careful.
According to research by IPO experts, IPOs that are most successful initially often under perform over the long term.
written by Constantine Njeru
\\ tags: Bloomberg, Businessweek, Initial Public Offerings, Investing Guide, Investments, Investor Interest, Ipo Experts, Ipos
According to some analyst, a barrel of oil could top $100 in 2011. A businessweek /bloomberg article gives some compelling arguments.
Four Reasons Why the black gold will hit $100 in 2011.
- The continued falling dollar, there is a link between the dollar and oil. They move in opposite directions. as Dollar goes down, the price of oil goes up.
- The US Fed Bank continues printing dollars. The past few years have shown that the more cheap money in the system, the more money flows into commodities, in particular energy.
- The OPEC will continue protecting their cash cow. The cartel members may seek a higher price by as the depreciation of the greenback erodes the profitability of their dollar-denominated oil export.
- Growth in Emerging markets means demand for oil will remain strong going forward.
written by Constantine Njeru
\\ tags: Barrel Of Oil, Black Gold, Bloomberg, Businessweek, Cartel, Cash Cow, Cheap Money, Commodities, Depreciation, Dollar, Emerging Markets, Greenback, Members, Money Flows, Oil Barrel, Oil Export, Opec, Price Of Oil, Profitability
If you are a follower of Ken Fisher you must be interested to listen to his latest forecast on what will happen in the next decade.
The next decade will be as good for investors as the 1990s, said Ken Fisher, the billionaire chief executive officer of Fisher Investments Inc.From Bloomberg
Fisher made this forecast at the Forbes Global CEO Conference in Sydney.
Don’t follow Fisher’s forecast blindly, the man might have made a ton of money from stocks before but keep in mind the man is human and he makes mistakes just like us mere mortals.Like in the case below:-
Fisher said in October 2008 that U.S. stocks were close to the bottom. The S&P 500 fell about 30 percent from October 2008 to a 12-year low in March 2009.
written by Constantine Njeru
\\ tags: 1990s, Amp, Billionaire, Bloomberg, Ceo Conference, Chief Executive Officer, Fisher Investments Inc, Follower, Forbes Global, Global Ceo, Investors, Ken Fisher, Mere Mortals, Money, Next Decade, Stocks, Sydney
According to bloomberg data news among 44 Apple analysts covering Apple stock ; 38 have “buy” ratings and four are neutral one a Mr. Lindberg is “Sell”
See story at globe & Mail
written by Constantine Njeru
\\ tags: Amp, Apple Stock, Bloomberg, Data News, Globe, Lindberg, Mail
Theme designed by Wordpress Hosting supported by Best Web Hosting.
|
|