Russian Roulette

We continue to come across investors looking for a safe place to park excess capital and pick up a high yield. Unfortunately, achieving a higher rate of income than you can get from a bank term deposit and taking low risk are mutually exclusive….

 

It is crazy that investors are playing Russian Roulette in this market.  A 41% default rate,  No thanks.

The average joe on the street has no idea what they are investing in when their advisor chucks them in a bond fund to chase yield.  Quite often these funds have long flashy names; designed to fool.

Remember interest rates in Australia are 0.10%, negative in Europe and the US is 0% to 0.25%.  Be weary of those offering oversized income opportunities.

Do you know what you are invested in?

 

 

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