For example, investment grade corporate bonds gave back more than half of the spread gains they made since the panic of October 1998. The story is very similar for mortgage securities. However, the good news is that these very same spreads have started to tighten noticeably since early September. High-yield corporate bonds exhibited a similar pattern but have yet to show solid signs of recovery. Portfolios were moved from a minor overweight in spread products to nearly maximum exposure levels.
Past performance is no guarantee of future results.
All material presented is compiled from sources deemed to be reliable, but accuracy and completeness cannot be guaranteed. Earnings and growth estimates are based on advisor's analysis of independently obtained information. The data presented is taken from publicly available information as is based on advisor's best efforts to present factual information. Given the inherent volatility of the securities markets, it should not be assumed that future investors will experience returns, if any, comparable to those discussed herein. Small company investing involves greater opportunity for growth, but may also involve greater risks, including more limited earnings histories and product lines and greater price volatility.