Bonds are usually the only asset class that Stan Richelson owns in the client portfolios that he manages at his wealth management firm, Scarsdale Investment Group in Blue Bell, Pa. But not all fixed-income securities are created equal, of course, as he explains in his recent book Bonds: The Unbeaten Path to Secure Investment Growth.
Selectivity is all the more important in today’s turbulent times—even with bonds, Richelson advises in today’s edition of The Inside View podcast. Despite enormous yield premiums over Treasuries in some corners of the bond world—including “investment-grade” corporates—Richelson is more conservative than ever when it comes to investing in what’s generally the most conservative asset class. He expects tough times ahead for the corporate world and that makes him anxious about the sector’s prospects. The high yields, in other words, don’t look enticing after he considers the risk in 2009 and beyond.
The lofty yields in munis, on the other hand, represent “enormous opportunity,” he says. He’s also intrigued with inflation-indexed Treasuries, even though deflation is the big worry at the moment.
For the full conversation on what Richelson’s thinking for bond investing these days, take a listen…