“Someday financial markets will decline...rising stock/bond markets will no longer be government policy. QE will end and money won’t be free. Corporate failure will be permitted. The economy will turn. Someday, somewhere, somehow, investors will lose money and once again come to favor capital preservation over speculation. Someday, interest rates will be higher, bond prices lower, and the prospective return from owning fixed-income instruments will again be commensurate with risk.” Seth Klarman
Tuesday, June 9, 2015
US high yield vs. US investment grade bonds before finl crisis...total return thru today = ~identical ...Wisdom?
So...why take the risk? Risk belongs under your control = in your business, not in your savings/business reserves.
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