Skip to main content
No. of Recommendations: 3
Where—and how—we look for opportunities
The forces that drive financial markets are always in motion. Economic growth increases and slows. Investors' enthusiasm for certain asset classes or companies rises and falls. New technologies arise, while older ones fade away. Because market conditions constantly change, the investments that deliver the highest returns today may not be the ones that do so next month or next year. That's why multi-asset income strategies that can invest across a wide variety of asset classes may be able to deliver more consistent returns and a better balance between risk and return than those with fewer options to choose from.

                           How yields and risks of popular investment choices compare

1 Yield Risk Risk from changes in interest rates
1a Lowest Lowest Cash
1b Lower Lower Treasury inflation Portected Bonds
1c Lower Lower Government Bonds
1d Lower Lower Corporate Bonds
1e Lower Lower Emerging-market Bonds

2 Yield Risk Risk from default by bond issuer
2a highest Intermediate Floating-rate debt
2b highest Intermediate High-yield bonds
2c Higher Intermediate Convertible Bonds
2d Higher Intermediate Preferred securities

3 Yield Risk Risk from declines in stock prices
3a Lower Higher Dividend-paying stocks
3b Lower Higher Real Estate investment trusts
3c Lower Highest S&P 500
Print the post  


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.
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.