"With short-term money markets paying close to 0% and residual stock market fears from the 2008 financial crisis, investors are being lured into bonds without recognizing the risks," says Jim Stack.

The money manager, noted for his "safety-first" investing principles, accurately forecast the financial crisis and housing bubble -- as well as many of the market's major turning points over the last two decades.

Now, the editor of InvesTech Market Analyst sees increasing risks in the bond market and offers six rules for bond investors to help avoid undue risk.

Continue reading Six 'Safety-First' Rules for Bond Investors

Six 'Safety-First' Rules for Bond Investors originally appeared on BloggingStocks on Fri, 08 Oct 2010 13:30:00 EST. Please see our terms for use of feeds.

"When it comes to bond managers, you won't find better than Bill Gross, founder and Managing Director of Pacific Investment Management Company (PIMCO)," asserts Amy Calistri.

The editor of The Daily Paycheck explains, "Gross is considered the world's foremost fixed income authority. And when you own the PIMCO Corporate Income Fund (PCN), you tap into his expertise and enviable track record.

She continues, "Since its inception in December 2001, the fund has enjoyed an average annual return of +11.3%. And Gross doesn't generate those returns by holding high-risk junk bonds. The fund's portfolio has an investment-grade credit quality.

Continue reading PIMCO Corporate Income Fund (PCN): Investing with Bill Gross

PIMCO Corporate Income Fund (PCN): Investing with Bill Gross originally appeared on BloggingStocks on Fri, 04 Jun 2010 11:40:00 EST. Please see our terms for use of feeds.

This post is part of a 12-article feature that can be read here: Today's best income ideas.

The latest buy recommendation from Jack Adamo is a leveraged ETF that rises in value when long-term Treasury bonds fall in price.

In Insiders Plus newsletter, he looks at ProShares UltraShort 20+ Year Treasury Bond (NYSE: TBT), noting, "Given that the government is printing money by the carload with nothing to back it, inflation has to rebound at some point."

Continue reading ETF banks on a bubble in Treasuries

ETF banks on a bubble in Treasuries originally appeared on BloggingStocks on Sun, 01 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

This post is part of a 12-article feature that can be read here: Today's best income ideas.

"You may be surprised to learn that we are in the midst of one of the greatest financial bubbles in history," explains Nick Vardy, referring to long-term government bonds.

In his Global Bull Market Alert, the advisor suggests, "This bubble isn't motivated by greed, but by fear." Here, he looks at the Rydex Inverse Government Long Bond Strategy Inverse (RYJUX), which he says, has the potential to become "the biggest trade of the year."

Continue reading Government bonds: An 'inverse' strategy

Government bonds: An 'inverse' strategy originally appeared on BloggingStocks on Sat, 28 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

This post is part of a 12-article feature that can be read here: Today's best income ideas.

"We're riding the coattails of the federal government as Uncle Sam continues to purchase mortgage-agency debt while driving longer-term mortgage rates lower," says Eric Roseman.

In yield-oriented advisory -- Accelerated Income -- he looks at Blackrock Income Trust (NYSE: BKT) which seeks to provide "high monthly income while preserving capital by investing in a portfolio of mortgage-backed securities."

Continue reading Blackrock Income (BKT): Mortgage-backed income

Blackrock Income (BKT): Mortgage-backed income originally appeared on BloggingStocks on Sat, 28 Feb 2009 09:30:00 EST. Please see our terms for use of feeds.

With stock prices near decade lows and fear at generational highs, many market participants are looking for harbors in the storm -- and turning their eye from high risk growth stock opportunities to what are generally more conservative income ideas.

For those looking to broaden their holdings to include yield-generated income, we turned to a dozen leading newsletter advisors who in turn offered a wide variety of income-oriented ETF and fund favorites.

Yes, fixed income holdings have their own risks. But in general, a diversified portfolio -- balanced between stocks and bonds -- has proven a more defensive posture. In addition, the selections in this report are funds and ETFs; as such the investments themselves are diversified among many holdings.

Continue reading Today's best income ideas: A dozen experts look for yield

Today's best income ideas: A dozen experts look for yield originally appeared on BloggingStocks on Fri, 27 Feb 2009 16:35:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"My top pick is US Cellular 8.75% Senior Notes (NYSE: UZG)," says Carla Pasternak. In her income-oriented advisory service, High-Yield Investing, she says, "The best thing about them? They are bonds, but trade like stocks."

Pasternak explains, "Their total interest payments of $2.1875 a year dished out quarterly are legal obligations, not discretionary payments like stock dividends.

"As senior notes, too, investors can rest assured that UZG's interest payments have a prior claim on the company's assets, ahead of any common or preferred share dividends, if the issuing company were to run into trouble.

"Not that I consider it likely United States Cellular (NYSE: USM), America's sixth-largest wireless firm and the name behind these bonds, is any danger.

Continue reading Top Stock Picks '09: US Cellular Senior Notes (UZG)

Top Stock Picks '09: US Cellular Senior Notes (UZG) originally appeared on BloggingStocks on Mon, 12 Jan 2009 16:00:00 EST. Please see our terms for use of feeds.

"Like other US Treasuries, Treasury Inflation Protected Securities (TIPs) have virtually no credit risk," explains fund expert Mark Salzinger.

The editor of The No-Load Fund Investor adds, "Unlike other US Treasuries beyond short-term bills, however, TIPs also have no inflation risk." Here, he looks at an EYF based on TIPs.

"Twice a year, TIPs' principal valuis are adjusted upward by the amount of the increase in the Consumer Price Index Urban (CPI-U), thus protecting their holders against increases in inflation.

"The total return of the bond equals its yield plus the change in principal value based on inflation, changes in real interest rates (published interest rates minus inflation) and supply-demand in the market for TIPs.

"TIPs' yields are lower than those of regular Treasury sercurities of similar maturities. That's one of the disadvantages of TIPs.

"The other is that any increase in principal value due to the biannual inflation adjustment gets taxed every year as if it were received income.

Continue reading Fund expert offers tip on TIPs

Fund expert offers tip on TIPs originally appeared on BloggingStocks on Wed, 22 Oct 2008 10:10:00 EST. Please see our terms for use of feeds.

"After reviewing financial statements and data on dozens of closed-end funds, we identified MFS Intermediate Income Trust (NYSE: MIN) as one of my top picks," says income expert Carla Pasternak.

In her High Yield Investing, she explains, "You won't find many closed-end funds with a better mix of high-quality bonds than MIN's AA+ rated portfolio." Here's her look at this fund that offers an estimated 9.8% yield.

"MFS Intermediate Income Trust holds U.S. and foreign developed government bonds; it offers a discounted share price and a steady income stream powered by healthy earnings from portfolio assets.

"And like other bond funds, it can be affected by rising interest rates, but its diverse portfolios should help steady returns.

"You won't find many closed-end funds with a better mix of high-quality bonds than MIN's AA+ rated portfolio. The fund invests in AAA-rated U.S. Treasuries and agency bonds, foreign debt of developed countries, and high-grade corporate bonds.

"Management insulates the portfolio assets from currency volatility by holding them in U.S. dollars. A low duration of 4.4 years limits sensitivity to changing interest rates. The fund also may trade derivatives and use leverage to boost returns.

Continue reading Income expert eyes AA+ portfolio

Income expert eyes AA+ portfolio originally appeared on BloggingStocks on Thu, 31 Jul 2008 11:33:00 EST. Please see our terms for use of feeds.