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Old 03-09-2009, 09:39 PM   #28
macker
First Line Centre
 
Join Date: Apr 2007
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Quote:
Originally Posted by Slava View Post
There is no question that equities give you a bigger bang over the longer term...but if you are actively trading and managing your account you can get the best of both worlds. There are some bonds that are paying 9%+ right now...pretty attractive to add that to some equities!
But if you are actively trading and managing your account (I guess it's Scotia iTrade now ) bonds slow you down with waiting around for maturities and many of them are callable so you aren't in the drivers seat in many cases. I am happy to buy good quality names like AGU where I picked up another 4.89% today alone then wait for 1-2 years to get 9% and the opportunity cost during that 1-2 years is huge. Now is not the time to look the other way from equities as this is usually the time that we should be buying more. Besides even if my equity portfolio tanks I still get out with a 10% loss as I use trailing stops. You are not alone in the bond sentiment though as in January $78 Billion of investment grade corporate bonds were sold by companies that aren't backed by the government so the credit markets are thawing. Now if we can just get that $4 Trillion on the sidelines to come back into the game....
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