We have seen several signs of recovery from the recent economic crisis. A growing number of good news are released by many agencies signaling that the car sales, consumer interest and house buying begin to rise while the oil price is going up showing. Some companies start to report net profit or at least smaller losses.
We are moving to a better direction, and a more confidence outlook. Some reports show that high yield bonds are in moderate price range. It tells us that you may not get a big gain when investing in them. But does it mean should we abandon those bonds completely? Curiously, the answer is no. You should know that the goal of bond investing is to get a proper income from the principal and the other purpose is to get additional profit from the higher interest.
One thing to know is that, you will find that there are less high yield bonds in the market this year. This is natural because when the recession wanes the interest rate charged to corporates will tend to get stagnated. But, it is possible that the rates will go up again? Of course.
The economic recovery is not yet reached its peak. In 2011, we may still see that the economy will get better. Ignoring high yield bond in this condition is not an entirely good decision because you can get better yields certain fields that cover these bonds.
The corporate bonds rates will still continue to rise until the full recovery of world economy, it could happen in 2011 or 2012. So the faster you get a high yield bond, the better.
Again this is just a prediction, all the signs show that you can still get good profits with high yield bond. But do you want to sit still while other investors are gearing to earn profit one or two years from now? The decision is yours.
Tidak ada komentar:
Posting Komentar