Article by Gracian Mack and Frank McCoy.
Synopsis by Creative Investment Research. Copyright, 1995
A panel discussion, the article brought together fixed income experts from around the country, including William Michael Cunningham, President of Creative Investment Research. The article discusses fixed income, or bond, investments. Fixed income investments are interest-bearing securities. That means these securities promise to pay investors a stated amount, called the interest payment, on a regular basis. This interest payment can be made to investors every month, every six months or once a year. Stocks or equity investments have no such payment guarantee. The profit potential for equity investments is much higher, but so is the risk.
Bond Market Investment Advice - In the article we recommended that investors NOT purchase municipal securities issued by the District of Columbia, given the financial difficulties the city was experiencing at that time. (NOTE: We have since revised that advice to suggest that investors BUY municipal securities issued by the District of Columbia.)
We also recommended that experienced investors look to bond markets in Thailand, Malaysia, Indonesia and Singapore for above average returns. One method for investing in these markets is through an International Bond Mutual Fund.
We also recommended that minority investors review a company's social record before investing. What is the corporate affirmative action track record, for example? How has the company treated it's minority and female employees?
e ratio of reward to risk, and may still benefit as investors become enthusiastic for Asian bank stocks.
