While some investors are fearing a cut in the company's credit rating, we feel that a downgrade has already been priced in and that RJR debt remains a good value. This fund is well suited for an investor seeking above average total returns. However, the objective of the New England Strategic Income Fund allows me to invest in more high-yield securities and even some common stock. This permits the Strategic Income Fund to be slightly more aggressive. It is general consensus that the market is expecting the Fed to tighten.
Higher rates equal more money.
While stocks have enjoyed unprecedented performance over the last five years, I do think that the stock market is just too high. The value between bond prices and stock prices has become increasingly distorted. I realize that some investors find index funds compelling, especially with the recent activity in the market. We set the bar high and go after it. We also enjoy the benefits of a large in-house research department and the collective expertise of over 75 portfolio mangers.