Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Walmart's New Health Food Push: Is It Too Hard to Swallow?
In the U.S. alone, insurance companies hold more than $2.2 trillion in corporate debt, having spent 2009 buying bonds at a faster rate than it had in the past five years. As Warren Buffett of Berkshire Hathaway (BRK.A) put it, the market was "raining gold." Net purchases of corporate bonds by the U.S. insurance industry jumped to $153 billion last year, most of it in the first quarter, when yields were highest. In 2008, outflows reached $59 billion. In 2004, inflows hit $172 billion. According to Judy Greffin, Allstate's (ALL) chief investment officer, tells Bloomberg News, "It has paid off very nicely," as evidenced by the 20% growth in Allstate's corporate debt holdings last year, which reached $33.1 billion. She continues, "With the benefit of hindsight, I would have loved to have bought more." Likewise, Buffett indicated that he should have invested more. MetLife (MET) and Prudential Financial (PRU) also benefited from the corporate debt rally, which has helped them recover much of the capital lost from the financial crisis of September 2008.
After three months it is time to face the facts: two of the three indices beat my picks handily. I have not made a good showing so far and unlike most investment idea sources, I feel obliged to air my dirty laundry for all to see.
Goldman Earnings Sink After Buffett Dividend
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