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Protect Your Investment During Economic Crisis
0 Comments | Posted by Mr Apprentice in Blogging
Why are premium corporate bonds sparkling in these days? The stock markets slump for months and there is no end of this decline in sight. There is a flight in government bonds and there are already comments about a suspected bubble of the government bonds.
Thus they should be left out. Gold is a nice alternative, but gold prices are very volatile. Bonds have been considered as boring, because there are no exciting stories to tell as with stocks in the field of private equity.
Corporate bonds look promising in a time of credit crunch. It is even tough for companies with a high-marked rating and an excellent public reputation to borrow money. They show a high yield and wide credit spread nowadays. Investments in such corporate bonds are attractive because the inflation is low, thus the yield beats the inflation and offers a real surplus.
Their yields are not spectacular compared to the profits on investments in private equity or hedge funds, but they promise a regular and safe income and almost no risk to lose the initial investment
It is always risky to recommend certain investments. If such hot tips to make money fail the adviser gets blamed. It is even more difficult to claim that it is possible to make money asleep. There is no rule without exception. Such exceptions are the tip to invest in corporate bonds of investment grade companies as Nestle or Toyota. They have emitted new bonds recently.

