High-Yield Jitters and "Risk-Off" Trades

If you are an income-focused investor, you may have noticed cracks are starting to form in many of those enticing high-yielders over the last week. Specifically, high-yield bonds, MLPs, and certain high-yield stocks are dropping as the flight to quality has lifted Treasuries. With this week’s Fed meeting and a possible Brexit on the horizon, investors are nervous. As long-term investors, here’s exactly how we are adjusting our investment portfolio…

As long-term investors, we are making zero changes to our investment portfolio. Acting out of panic or fear is often the exact wrong thing to do. Rather, we’ve diversified our investment portfolio because we know the market gets volatile (i.e. the VIX, aka “Fear Index” has climbed 49% in the last week). We know owning quality investments for the long-term is a proven recipe for success. Rather than making silly trades out of fear which will drive up transaction costs and potentially cause us to miss out on long-term returns, we’re sticking with our diversified, long-term, quality, investment strategy. Learn more here.

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