UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: elambeth One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Junk bonds: appropriate for long term investing? Date: 8/27/2000 3:15 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I'm in my early 20s, very risk-tolerant, and am looking for a few ultra-aggressive investments for my IRA.

So far, I've got some biotech stocks, some internet stocks, and an emerging markets mutual fund. This is just about the most aggressive collection of investments I can think of. (my 401k is all in the S&P500 index so I feel I can go further afield with my IRA.)

Anyway, I'm considering adding one more investment: Junk bonds. But I'm not sure if these are appropriate for me. On the one hand, I've heard that they behave like equities and are considered "aggressive," unlike most bonds. On the other hand, I see that even the best junk bond funds over the last 10 years have an annualized return of 10%-12%... not that impressive.

So are these appropriate for an aggressive investor with a 30-year horizon? Or would I be better served by putting the money into stocks?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Starting a Small Business
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement