Wednesday, May 2, 2007

Bond investors (BAD FOR BUSINESS)

I’m a all stock guy, I’m not in this business to sell bonds(I’m here for the money!). But many customers want portfolio that are a blend of stocks and bonds. My recommendation less bonds more stocks no one on my book is under 70 stocks / 30 bonds, nobody ever became rich investing in bonds that is my line ( Read it I won’t make money selling you bonds). So what to do whit this low return part of your business. My friends, as much as I hate funds for investment in the market, I love them for investing in bonds! Competition is fierce in our business and selling bonds is almost a zero commission business. What I told my partners(those paying my 35000$ monthly mortgage payment): Sir we could invest directly in bonds, but that is to risky, bonds move up and down and if you don’t hold it until the end you could lose money! And to have a good diversification in the bonds markets we need more than 10 millions. My solution Sir is to go with a good bonds fund(read: paying me the highest trailer fee) you won’t have volatility and make has much if not more money that buy the bond itself. What you got here is a genius(ME) turning a investment in bonds into money(for me).

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