For a year I held back, not believing the propaganda and kept it simple, just gold and yen/dollar. However, in the last week, after consultation with clients and much research, we bought back in.
Bought back in, but not into the equity market, nor into commodities. Instead, we bought high yield corporate bonds from banks. The bond that we bought had an interest rate in excess of 7% but a price less than half of its original minimum. The yield is based upon the original minimum, therefore because the price has dropped below half we will receive a return in excess of 16%pa. No matter how far down the price drops, the yield always assumes that the bond price is at EUR1.00.
With the bond price below EUR0.50, we can look forward to further growth with a price of at least EUR1.00 on maturity. That is way beyond double.
Obviously there is risk with the bond price. It has already fallen more than 50%. With that in mind we bought the minimum subscription. This reduces risk but more importantly will allow us to buy further tranches if the market falls.
This blog post is in no way a solicitation to buy and we assume all investments have risk attached.
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