For several years (including recent articles here and here)

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iPhone x case Sign in / Join NowSummaryMaking “equity” returns investing in DEBT rather than EQUITY is safer than many investors think.The words “High Yield Credit” scare the dickens out of some investors who think nothing of investing in mid cap or small cap stocks, virtually all of which are non investment grade.Yet whenever you invest in the equity of a company, you are ALSO taking its credit risk (If a company fails to pay its debts leather iphone wallet case, its equity is worthless).The GOOD NEWS: when you look at the stats, high yield credit investing is not so scary after all; many would argue it is LESS risky than equity.NERD ALERT: This article is a bit WONKY.For several years (including recent articles here and here), I have been describing my strategy of using credit markets as an alternative to equity markets to achieve “equity returns iphone case with card holder,” which I define as long term total returns of plus or minus 10%.I pick 10% because (1) that is approximately what the S 500 has earned on average since 1928 so it makes a good long term proxy for a generic “equity return,” (2) it is a rate that would double an investor’s money every 7 years, making it an appropriate target for long term investors whether in their 20s or already retired, and (3) it is a yield (and therefore, a compounding rate) that is readily achievable using closed end funds and other high yielding investments available to retail investors.Invariably, when I describe my investing strategy of using high yielding, credit risk oriented securities as my asset class of choice (instead of traditional equities), I get variations of: “Isn’t that awfully risky?” or “How can you buy high risk, non investment grade debt?” and similar concerns. The nature of the credit risk “bet” and the equity “bet.” How credit risk and interest rate risk vary considerably among different types of bonds and loans (and lots of investors don’t appreciate the difference, or what they’re actually betting on). The ins and outs of credit ratings iPhone x case.

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