Investment Advice in the media is offered to all readers, whether professionals or ordinary investors. So read between the lines carefully, as the information may not apply to you.
I recently saw one item where the adviser, from a major investment banking house, suggested, that “reaching” for income was risky in high yield bonds. Risky, that is, for average investors who. unlike him, were not able to borrow millions at low cost, and then invest in U. S. Treasury bonds or other assets for a profit spread of a couple of percentage points.
The Main Street investor, not knowing or able to profit from this tidbit, could be impressed by that sage advice. However, it’s very impractical indeed for a modest account.
The ability to borrow would be impossible on the terms needed by Mr. Everyman, as opposed to the professional with access to the millions in credit for the purpose.
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