The
financial media goes to its usual extremes when describing investment
risks, so much so, that some investors may deem it wiser to keep
funds in a mattress; why brave the wilds of the marketplace
being described to them by pundits?
This is especially the case with junk bond risk, as described by the financial media, a topic I often discuss.
Junk bonds do have credit risks but the latter can be wisely handled with an eye on industry default rates to an extent. To a much greater degree, the risk can be managed with the use of duration principles and low-cost mutual fund means of diversification. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
This is especially the case with junk bond risk, as described by the financial media, a topic I often discuss.
Junk bonds do have credit risks but the latter can be wisely handled with an eye on industry default rates to an extent. To a much greater degree, the risk can be managed with the use of duration principles and low-cost mutual fund means of diversification. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
No comments:
Post a Comment