No. of Recommendations: 1

I authored the squib, so I should comment. You correctly note the fact of current yield comaparabilities between a wide variety of debt instruments. That situation doen't always obtain. Nor is it possible to predict (or even forecast) its persitence. Thus, a person has to make the best guess they can with current information.

A suggestion: dig a bit deeper in the matter and you'll find that the situation isn't quite as you describe it. Right now, the easy and safe stuff is trouncing what normally offers higher yields on both an absolute and a risk-adjusted basis. The why's are complex and maybe even unknowable. Thus, one has to accept what one sees and act appropriately. When the situation changes, and it will, then change with it. Meanwhile, do what makes the best sense to you in light of your own individual situation.

Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.