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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (32400)10/10/2008 12:34:22 AM
From: Jurgis Bekepuris  Read Replies (1) of 78705
 
Spekulatius,

Bond purchases were "real bargains" last week. ;) Now, with the crash of stocks, stocks are becoming better bargains again. :)

Let's put it this way. Last week, you could get a preferred or a bond with ~20-30% yield to maturity with 2-3 year term. This week I see stocks that could go 100% up in a month... - I mean "in two years" :) - and still be undervalued.

Sure, bonds/preferreds still have a higher security of return - there are only two possible outcomes: you get your yield and principal or company goes poof and you get some principal (perhaps). With stocks there is always a risk that they won't go up 100% if people bunker down in their nuclear shelters.

Maybe the secret is to buy a mix. :)
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